# \[Gauntlet\] - Caps Recommendation Proposals

**URL:** <https://forum.moonwell.fi/t/gauntlet-caps-recommendation-proposals/1300>\
**Category:** Proposals\
**Created:** [October 21, 2024, 11:29pm UTC](https://forum.moonwell.fi/t/gauntlet-caps-recommendation-proposals/1300 "2024-10-21T23:29:38Z")\
**Posts on this page:** 1\
**Showing post:** 25

<div class="post-metadata">

**Author:** ![Gauntlet](https://dub1.discourse-cdn.com/flex017/user_avatar/forum.moonwell.fi/gauntlet/32/780_2.png) [@Gauntlet](https://forum.moonwell.fi/u/Gauntlet)\
**Post date:** [April 30, 2025, 12:55pm UTC](https://forum.moonwell.fi/t/gauntlet-caps-recommendation-proposals/1300/25 "2025-04-30T12:55:35Z")

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# [Gauntlet] - Cap Recommendations (2025-04-30)

Gauntlet will use Cap Guardian to adjust the Supply and Borrow Cap for the below assets:

| Asset | Chain | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
| --- | --- | --- | --- | --- | --- |
| wrsETH | Base | 1,300 | 200.0 | 430 | No Change |
| wrsETH | Optimism | 800 | 20.0 | 160 | No Change |

# Supporting Data

On April 30, 2025, Kelp DAO [confirmed](https://x.com/KelpDAO/status/1917503028267213270) that a recent upgrade introduced a bug in their fee minter contract, causing excess rsETH to be minted to the fee address. This means that rsETH tokens were created without proper backing, disrupting the intended peg and collateral structure of the liquid restaking system.

Even with funds safe, a minting error—especially in fee logic—may raise questions around:

- Contract audit coverage
- QA processes during upgrades
- Fee transparency and governance over emissions

The surplus rsETH remains untouched in the DAO’s fee address. To mitigate risk prior to the team executing the burn and restoring balance, we recommend temporarily limiting caps.

## Utilization

On both Base and Optimism, supply cap utilization is under 30%.

### Base

 ![Screenshot 2025-04-30 at 8.47.17 AM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/f/ff9794fd9fe51e0afa6f283c2ee27dd722e29a29.jpeg)

### Optimism

 ![Screenshot 2025-04-30 at 8.45.43 AM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/0/0c0aa5a3fd4aefe2cd68475dedd1b2670fd1f7eb.png)

# Quick Links

Please click below to learn about our methodologies:

[Gauntlet Parameter Recommendation Methodology](https://medium.com/gauntlet-networks/gauntlets-parameter-recommendation-methodology-8591478a0c1c)

[Gauntlet Model Methodology](https://medium.com/gauntlet-networks/gauntlets-model-methodology-ea150ff0bafd)

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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_[View the full topic](https://forum.moonwell.fi/t/gauntlet-caps-recommendation-proposals/1300)._