Simple Summary
Gauntlet recommends the following supply cap adjustments to the protocol:
Supply Caps
| Status | Comet | Collateral | Supply Cap |
|---|---|---|---|
| Current | Mainnet USDC | USDe | 30,000,000 |
| Proposed | Mainnet USDC | USDe | 15,000,000 |
| Current | Mainnet USDT | USDe | 30,000,000 |
| Proposed | Mainnet USDT | USDe | 15,000,000 |
Analysis
Since the initial listing parameter recommendations, the liquidity profile of USDe has changed on Mainnet. Onchain liquidity has declined over the last month with the main DEX pool (Fluid USDe/USDT) reducing by ~$30M.
DEX Liquidity
| Pool Type | Pool Name | Pool URL | TVL ($) | 24H Volume ($) |
|---|---|---|---|---|
| Fluid | USDe / USDT | Link | 16.4M | 6.9M |
| Uniswap | USDe / USDT 0.005% | Link | 14.1M | 21.43M |
| Uniswap | USDe / USDT 0.001% | Link | 2.2M | 1.54M |
| Uniswap | USDe / USDC 0.01% | Link | 2.0M | 1.6M |
| Curve | USDe / USDC | Link | 1.2M | 374K |
Note: The above is not exhaustive. This is just a summary of the largest sources of DEX liquidity at the time of this recommendation.
DEX Slippage
USDC
As shown above, a 15M cap of USDe can be swapped to USDC or USDT with less than 1% slippage.
However, swapping the current full caps on both Comets now results in significant slippage (over 18%). For reference, when first reviewed for listing, the combined caps (60M) could be swapped for less than 1% slippage.
The recommended caps can be liquidated together with less than 1% slippage:
USDT
Recommended Cap:
Current Combined Cap:
The recommended caps can be liquidated together with less than 1% slippage:
Next Steps
- Gauntlet will continue to monitor onchain liquidity and recommend updates based on demonstrated community demand and sufficient liquidity.
- We welcome community feedback.