Hello Moonwell Community,
As a dedicated member of this community, I would like to address the recent recommendations by Gauntlet regarding the application of limits on market borrow caps and supply caps.
While I understand that these recommendations are made with risk management in mind, I believe that applying strict caps might not be the best approach for our protocol. Similar protocols, such as Venus Finance, have more logical and limitless caps, which allow for greater flexibility and liquidity within the market.
Key Points:
- Liquidity for MEV Bots: Without limits on caps, we can enable our liquidity to be utilized by MEV bots for arbitrages, potentially increasing overall market efficiency and liquidity.
- Comparison with Venus Finance: Venus Finance operates with more logical and limitless caps, which seems to provide better support for market dynamics without imposing unnecessary restrictions.
- Community Impact: I believe that removing these caps could benefit the entire Moonwell community by fostering a more dynamic and liquid market.
I invite all community members to share their thoughts on this matter. Let’s discuss the potential benefits and risks of removing or adjusting these caps and find the best solution for Moonwell Finance.
Looking forward to hearing your perspectives!