[Gauntlet] Supply Cap Recommendation Proposals

[Gauntlet]

[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]

[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]

[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

[Gauntlet]

[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]

[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

[Gauntlet]

[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]

[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]

[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]

[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

[dmitriywoofsoftware]

WOOF! has decided to support Gauntlet in pushing the proposal to accelerate the cap updates.

Proposal - Tally | Compound | [Gauntlet] Supply Cap Recommendations (04/28/25) pushed by WOOF!
Enact - Enact Migration · woof-software/comet@491fcc1 · GitHub

[Gauntlet]

[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]

[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