Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase USDT Arbitrum wstETH Supply Cap from 5,000 to 10,000
- Increase USDC Arbitrum wstETH Supply Cap from 1,500 to 5,000
- Increase WETH BASE ezETH Supply Cap from 500 to 1,500
Analysis
Arbitrum wstETH
Top wstETH Supply Positions in USDT Comet
The top supplier currently holds a $4.6 million position in wstETH. This position is subject to potential liquidation on the Arbitrum network, with an estimated slippage of 0.3%.
Top wstETH Supply Positions in USDC Comet
The top supplier position in the wstETH/USDC Comet is approximately 4x smaller than the corresponding position in USDT. There is significant liquidity available on Arbitrum-based DEXes, indicating a feasible opportunity to increase the wstETH supply cap.
BASE ezETH
Top ezETH Supply Positions in WETH Comet
Liquidity for ezETH has been on an upward trend since our last recommendation. Under current DEX liquidity conditions on the BASE network, the top 10 positions could be liquidated efficiently and without significant impact on the market.
Next Step
- Welcome community feedback
- Submit on-chain proposal