Gauntlet - AERO Cap Recommendations (2024-07-19)

Simple Summary

Gauntlet will use Cap Guardian to increase the Supply and Borrow Cap for AERO.

Asset Current Supply Cap Recommended Supply Cap Current Borrow Cap Recommended Borrow Cap
AERO 16,000,000 22,000,000 10,000,000 13,500,000

Gauntlet will be utilizing the Cap Guardian to enact this change as voted by the community within this forum post and proposal.

Supporting Data

AERO Borrowing

Top Suppliers

5 out of the top 10 AERO suppliers have no debt. The rest of the positions are borrowing USDC against a blended WETH(or WETH Correlated)-AERO collateral.

AERO Liquidity

Liquidity Sources

Dex Category TVL (mil) URL
Aerodrome Base 97.26 Link
Aerodrome Base 6.58 Link
Aerodrome Base 4.03 Link
Aerodrome Base 3.54 Link
Aerodrome Base 3.06 Link
Aerodrome Slipstream 2.68 Link
Aerodrome Base 2.63 Link
Aerodrome Base 1.89 Link
Uniswap V3 Base 1.29 Link
Aerodrome Base 1.04 Link

Total: $122.5M

Across various AERO-ASSET pairings, the total liquidity across DEXs for AERO stands at $122 Million

25% DEX Slippage

Screenshot 2024-07-18 at 2.59.54 PM

An 86% of the total supply cap liquidation would incur a 25% slippage based on prevailing liquidity conditions.

AERO-USDC Pool TVL

The AERO-USDC Pool TVL has also been regaining levels post the market down-turn. Gauntlet will continue to monitor liquidity conditions to adjust risk parameters.

Quick Links

Please click below to learn about our methodologies:

Gauntlet Parameter Recommendation Methodology
Gauntlet Model Methodology

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.

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