[Gauntlet] Supply Cap Recommendations (01/16/25)
Simple Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase Optimism V3 WETH Comet’s wrsETH Supply Cap from 800 to 1000.
- Increase Optimism V3 WETH Comet’s rETH Supply Cap from 1200 to 3000.
- Increase Optimism V3 WETH Comet’s weETH Supply Cap from 1000 to 1600.
Analysis
Supply caps for assets in WETH Comets across all chains that use exchange rate can be effectively increased relative to the circulating supply on the respective chain.
Next Steps
- Welcome feedback from the community
- Post recommendations to on-chain proposal
[Gauntlet] Supply Cap Recommendations (01/21/25)
Simple Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase Ethereum V3 USDT Comet’s cbBTC Supply Cap from 500 to 1,000.
Top Positions
Slippage
Next Steps
- Welcome feedback from the community
- Post recommendations to on-chain proposal
[Gauntlet] Supply Cap Recommendations (01/22/25)
Simple Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase Ethereum V3 USDT Comet’s LINK Supply Cap from 500,000 to 1,000,000.
Utilization
Top Positions
Slippage
Next Steps
- Welcome feedback from the community
- Post recommendations to on-chain proposal
3 Likes
[Gauntlet] Supply Cap Recommendations (01/29/25)
Simple Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase Optimism V3 WETH Comet’s rETH Supply Cap from 3,000 to 5,000.
- Increase Optimism V3 WETH Comet’s wrsETH Supply Cap from 1,000 to 1,400.
- Increase Ethereum V3 WETH Comet’s weETH Supply Cap from 22,500 to 67,500.
Utilization
Optimism
Ethereum
Supply caps for assets in WETH Comets across all chains that use exchange rate can be effectively increased relative to the circulating supply on the respective chain.
Next Steps
- Welcome feedback from the community
- Post recommendations to on-chain proposal
[Gauntlet] Supply Cap Recommendations (02/03/25)
Simple Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase Base V3 USDC Comet’s cbBTC Supply Cap from 180 to 400.
Utilization
Top Positions
Slippage
Next Steps
- Welcome feedback from the community
- Post recommendations to on-chain proposal
1 Like
[Gauntlet] Supply Cap Recommendations (02/04/25)
Simple Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase Base V3 WETH Comet’s wrsETH Supply Cap from 230 to 700.
- Increase Base V3 USDC Comet’s wstETH Supply Cap from 1,400 to 3,000.
Utilization
Top Positions
Slippage
Next Steps
- Welcome feedback from the community
- Post recommendations to on-chain proposal
[Gauntlet] Supply Cap Recommendations (03/21/25)
Simple Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase Base V3 USDS Comet’s sUSDS Supply Cap from 25M to 50M
- Increase Mainnet V3 USDC Comet’s wstETH Supply Cap from 40,000 to 50,000
- Increase Mainnet V3 USDT Comet’s sFRAX Supply Cap from 30M to 40M
- Increase Mainnet V3 USDT Comet’s WBTC Supply Cap from 1,400 to 1,800
- Increase Mainnet V3 wstETH Comet’s tETH Supply Cap from 5,000 to 10,000
Utilization
sUSDS
wstETH
sFRAX
WBTC
tETH
Top Positions
wstETH
sFRAX
WBTC
Slippage
wstETH
sFRAX
WBTC
Next Steps
- Welcome feedback from the community
- Post recommendations to on-chain proposal
[Gauntlet] Supply Cap Recommendations (04/14/25)
Simple Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase Mainnet V3 USDC Comet’s wstETH Supply Cap from 50,000 to 75,000
- Increase Mainnet V3 USDT Comet’s wstETH Supply Cap from 60,000 to 75,000
- Increase Mainnet V3 USDT Comet’s WBTC Supply Cap from 1800 to 2,500
- No change for Mainnet V3 USDT Comet’s tBTC Supply Cap from 285
Utilization
wstETH Mainnet v3 USDC
wstETH Mainnet v3 USDT
WBTC Mainnet v3 USDT
Top Positions
wstETH Mainnet v3 USDT
wstETH Mainnet v3 USDC
WBTC Mainnet v3 USDT
Slippage
wstETH/USDC
wstETH/USDT
WBTC
Next Steps
- Welcome feedback from the community
- Post recommendations to on-chain proposal
[Gauntlet] Supply Cap Recommendations (04/28/25)
Simple Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase Mainnet V3 USDT Comet’s weETH Supply Cap from 12,000 to 18,000
- Increase Mainnet V3 WETH Comet’s tETH Supply cap from 4,000 to 10,000
- Increase Unichain V3 USDC Comet’s WETH Supply cap from 50 to 5,000
- Increase Unichain V3 USDC Comet’s UNI Supply cap from 7,000 to 100k
Utilization
weETH Mainnet v3 USDT
tETH Mainnet v3 WETH
UNI Unichain v3 USDC
WETH Unichain v3 USDC
Liquidity
weETH/USDT
Unichain TVL
Next Steps
- Welcome feedback from the community
- Post recommendations to on-chain proposal
1 Like
[Gauntlet] Supply Cap Recommendations (5/5/25)
Simple Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase Optimism V3 USDT Comet’s wstETH Supply Cap from 800 to 1,300
- Increase Mainnet V3 wstETH Comet’s tETH Supply Cap from 5,000 to 10,000
Utilization
wstETH Optimism v3 USDT
tETH Mainnet v3 wstETH
Top Positions
wstETH Optimism v3 USDT
Next Steps
- Welcome feedback from the community
- Post recommendations to on-chain proposal
[Gauntlet] Supply Cap Recommendations (5/27/25)
Simple Summary
Gauntlet recommends the following risk recommendations to the protocol:
- No Change to Mainnet V3 USDT Comet’s tBTC Supply Cap from 285
- Increase Mainnet V3 USDT Comet’s sFRAX Supply Cap from 40M to 50M
- Increase Mainnet V3 WETH Comet’s cbBTC Supply Cap from 93 to 150
- Increase Optimism V3 USDC Comet’s WBTC Supply Cap from 100 to 130
Utilization
sFRAX Supply Cap Utilization
cbBTC Supply Cap Utilization
WBTC Supply Cap Utilization
Top Positions
Across the board, the largest positions maintain a high health factor of >1.4.
sFRAX Top Positions
cbBTC Top Positions
WBTC Top Positions
Slippage
sFRAX/USDT Slippage
Liquidating the entire cap would incur a slippage of ~33%. However, given the health factor of ~1.5 and the high degree of correlation between sFRAX and USDT, we recommend an increase of sFRAX supply cap to 50M.
cbBTC/WETH Slippage
Increasing supply cap for cbBTC to 150 would incur marginal slippage. We therefore recommend a supply cap at this level before gauging demand for subsequent increases.
WBTC/USDC Slippage
Liquidating all the top 5 positions at once would incur a slippage of ~30% against USDC. Given the long-tail likelihood of this event and the strong health factors of the largest positions, we recommend increasing the supply cap of WBTC to 130.
Next Steps
- Welcome feedback from the community
- Post recommendations to on-chain proposal
[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
