[Gauntlet] - Supply Cap Recommendations - (2024-09-12)

Summary

Gauntlet recommends the following risk recommendations to the protocol:

  • Increase WETH Arbitrum ezETH supply cap from 2,500 to 4,000

Analysis

Top 10 Supply Positions for ezETH in WETH Comet

The top 3 largest suppliers for ezETH make up for >85% of the supply cap.

Top 10 ezETH Supplier’s Collateralization Ratios

Given the employement of Exchange Rate oracles, the likely pathway to liquidation would be the accrual of interest on user positions. Given the supplies, the largest positions show significant health factors as seen in their collateralization ratios.

Next Steps

  • Welcome community feedback
  • Submit on-chain proposal