Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase USDT Mainnet wstETH supply cap from 15,000 to 22,000
Analysis
USDT Comet
Top 10 Supply Positions for wstETH in USDT Comet
The top 10 largest suppliers for wstETH make up for >95% of the supply cap.
DEX Liquidity
The current slippage to liquidate the recommended supply cap in entirety is ~8% vs a Liquidation Penalty of 5%. The current caps are well tolerated relative to liquidity and liquidator incentives.
Top 10 wstETH Supplier’s Collateralization Ratio
Furthermore, the 10 largest supply positions show strong health factors denoted by their collateralization ratios.
Next Step
- Welcome community feedback
- Submit on-chain proposal