[Gauntlet] - Supply Cap Recommendation for USDC Comet on Mainnet (2024-08-26)

Gauntlet recommends the following risk recommendations to USDC Comet on Mainnet:

  • Increase wstETH Supply Cap from 15,000 to 25,000

Analysis


Top Suppliers of wstETH

wstETH exhibits a robust liquidity profile on the Mainnet. Currently, the Mainnet ecosystem possesses sufficient liquidity to absorb the three largest positions within the system should a liquidation event occur.

Since the introduction of wstETH as a collateral option in Comet, there has been a noticeable uptick in Supply Cap Usage. Over the past two months, this market has accumulated approximately $48 million in collateral and facilitated an estimated $20 million in USDC borrowings. Our recommendation will increase the supply cap to 25k ($96M).

Next Steps


  • Welcome community feedback
  • Post recommendation on-chain for the community to vote