Increase the supply cap of ETH on the USDC Comet market.
Supply caps protect against price manipulation attacks (among other risks) on illiquid tokens that involve supplying the manipulatable token as collateral. In this framework, it is prudent to have tighter supply caps for less liquid tokens. However, despite the current market conditions, ETH’s high liquidity has not been impacted – its +2% market depth generally remains above $300M. Given the market conditions and ETH’s supply being close to its current cap on Compound III, we support doubling ETH’s supply cap to allow for organic growth in the market.
There is currently ~$95M of ETH supplied on the Comet USDC market. For reference, ~$450M of ETH is supplied on Compound V2.
- Increase the supply cap of ETH on the Comet USDC market from 75,000 ETH to 150,000 ETH.
- Welcome feedback from the community.
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