Increase UNI Supply Cap in the USDC Comet Market

Simple Summary

Increase the supply cap of UNI in the USDC Comet market.

Motivation

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. Gauntlet recommends to increase the UNI supply cap to 2,300,000. Market data, including UNI’s +2% market depth at $11.3M and market supply demand ($7.1M), supports an increase to the supply cap to allow for organic growth in the market without adding outsized market risk.

In the meantime, Gauntlet is continuing to formulate a borrow and supply cap process for Compound V3 to streamline these cap adjustments.

Specification

Increase the supply cap of UNI on the Comet USDC market from 1,250,000 UNI to 2,300,00 UNI.

Next Steps

Welcome feedback from the community.

By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos.

3 Likes

Is there a proposal script associated with this change?

Currently, we are using our internal tools but yes, along with mainnet fork testing. We are working on solutions that are more open-source and will keep the community posted.

1 Like