Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase WETH Mainnet ezETH supply cap from 25,000 to 50,000
- Increase USDT Mainnet wstETH supply cap from 28,000 to 45,000
- Increase USDC Arbitrum wstETH supply cap from 5,000 to 8,000
- Increase USDT Optimism wstETH supply cap from 400 to 600
- Increase USDC Optimism wstETH supply cap from 600 to 960
- Increase WETH Optimism ezETH supply cap from 1,200 to 2,400
- Increase USDC Scroll wstETH supply cap from 250 to 1,000
- Increase USDC Scroll WETH supply cap from 2,000 to 4,000
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.
Mainnet Comets
wstETH USDT Mainnet
Top 10 suppliers
The top 10 wstETH suppliers collectively hold over $73.2 million in wstETH positions.
Top 10 suppliers vs slippage
The slippage incurred when liquidating the top 10 suppliers stands at 11%, exceeding the liquidation penalty of 5%. This level of slippage is more than adequate to facilitate the liquidation of substantial user positions effectively.
Arbitrum Comets
wstETH USDC Arbitrum
Top 10 wstETH Suppliers
The top 10 wstETH suppliers collectively hold over $8.5 million in wstETH positions.
Top 10 suppliers vs slippage
The slippage incurred when liquidating the top 10 suppliers stands at 1%, exceeding the liquidation penalty of 10%. This level of slippage is more than adequate to facilitate the liquidation of substantial user positions effectively.
Optimism Comets
wstETH USDT OP
Top 10 wstETH Suppliers
The top 10 wstETH suppliers collectively hold over $1.2 million in wstETH positions.
Top 10 suppliers vs slippage
The slippage incurred when liquidating the top 10 suppliers stands at 1%, exceeding the liquidation penalty of 5%. This level of slippage is more than adequate to facilitate the liquidation of substantial user positions effectively.
wstETH USDC Optimism
Top 10 wstETH Suppliers
The top 10 wstETH suppliers collectively hold over $1.5 million in wstETH positions.
Top 10 suppliers vs slippage
The slippage incurred when liquidating the top 10 suppliers stands at 1%, exceeding the liquidation penalty of 10%. This level of slippage is more than adequate to facilitate the liquidation of substantial user positions effectively.
Scroll Comet
wstETH USDC Scroll
Top 10 wstETH Suppliers
The top 10 wstETH suppliers collectively hold over $0.56 million in wstETH positions.
Supply cap vs slippage
The slippage incurred when liquidating the supply cap stands at 2%, exceeding the liquidation penalty of 15%. This level of slippage is more than adequate to facilitate the liquidation of substantial user positions effectively.
WETH USDC Scroll
Top 10 WETH Suppliers
The top 10 WETH suppliers collectively hold over $6.6 million in WETH positions.
Supply cap vs slippage
The slippage incurred when liquidating the supply cap stands at 5%, exceeding the liquidation penalty of 10%. This level of slippage is more than adequate to facilitate the liquidation of substantial user positions effectively.
Next Steps
- Welcome community feedback
- Submit on-chain proposal