Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase USDC Mainnet wstETH supply cap from 25,000 to 40,000
Analysis
USDC Comet
Top 10 Supply Positions for wstETH in USDC Comet
The top 10 largest suppliers make up 57% of the total supplies.
DEX Liquidity
The current slippage to liquidate the 10 largest positions is ~4% vs a Liquidation Penalty of 8%. 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, with the lowest collateralized position having a factor of atleast 2.