Simple Summary
Gauntlet recommends the following supply cap adjustments to the protocol:
Supply Cap Recommendations
| Status | Comet | Asset | Supply Cap |
|---|---|---|---|
| Current | Mainnet wstETH | tETH | 10,000 |
| Proposed | Mainnet wstETH | tETH | 5,000 |
| Current | Mainnet WETH | tETH | 10,000 |
| Proposed | Mainnet WETH | tETH | 5,000 |
Rationale
- Over the past few weeks, there have been substantial declines in tETH supply on both the WETH and wstETH Mainnet comets.
- In both cases, the current supply cap is ~$50M, equivalent to 10,000 tETH.
- Gauntlet recommends halving the caps to 5,000 tETH to mitigate potential risk to the protocol. We will continue to monitor supply inflows and user demand and will adjust as needed accordingly.
Next Steps
- We welcome community feedback.