[Gauntlet] Supply Cap Recommendations (6/26/25)
Simple Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase Mainnet V3 USDT Comet’s tBTC Supply Cap from 285 to 360
- Increase Mainnet V3 USDT Comet’s weETH Supply Cap from 18,000 to 25,000
- Increase Base V3 WETH Comet’s wrsETH Supply Cap from 700 to 1200
- Increase Base V3 AERO Comet’s cbBTC Supply Cap from 150 to 250
Utilization
tBTC Supply Cap Utilization
weETH Supply Cap Utilization
wrsETH Supply Cap Utilization
cbBTC Supply Cap Utilization
Top Positions
tBTC Top Positions
The largest supplier for both tBTC and weETH is the same user, supplying over $30M of both weETH and tBTC. The Health factor of this position is over 4. We recommend increasing the supply caps for both tBTC and weETH as this user accounts for over 90% of the supplies in both markets.
wrsETH Top Positions
Given the use of exchange rate, and the recursive nature of the positions, we recommend increasing the caps to 1200.
cbBTC Top Positions
The largest position makes up over 80% of the supplies in this market, and has a health factor of 1.91.
Slippage
cbBTC/AERO Slippage
When liquidating the entire cap, the slippage is 8 pct points over the liquidation penalty. We recommend increasing the caps to 250 given the utilization, largest positions and the relative slippage.
weETH/USDT Slippage
Similarly for weETH, liquidating the entire cap nets a -34% slippage. The largest position supplies about 12k weETH. Although this user has a high health factor of 4.87, liquidating this position would lead to a slippage of 3.57%, well below the liquidation penalty for this market.
tBTC/USDT Slippage
Given, user 0x3c9e makes up over 90% of the supplies and has a health factor of over 4, we discount this position and raise caps by 100 tBTC and simulate the slippage if the rest of the positions were to be liquidated. The slippage values are well tolerated within the liquidation penalty.
Next Steps
- Welcome feedback from the community
- Post recommendations to on-chain proposal