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
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