Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase WETH Mainnet ezETH supply cap from 12,000 to 18,000
Analysis
Top ezETH Supply Positions in WETH Comet
The top supplier currently holds a $9.63 million position in ezETH. The total supplies from the top 10 supplier is $26.1M which is ~88% of the total supply cap. The use of exchange rate oracles insulates this market from transient deviations of ezETH peg, however, sufficient liquidity exists externally to absorb these positions if they face liquidations due to elevated interest rates.
Next Steps
- Welcome community feedback
- Submit on-chain proposal