Gauntlet - cbBTC Cap Recommendations (2024-09-12)

[Gauntlet]

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

Asset	Current Supply Cap	Recommended Supply Cap	Current Borrow Cap	Recommended Borrow Cap
cbBTC	0.001	12	0.0005	8

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

Supporting Data

cbBTC Liquidity

cbBTC liquidity has been strengthening, with over $1 million in total value locked (TVL) and daily volume across cbBTC pairs in just over a few hours. We anticipate further growth in TVL and recommend adopting a risk-on approach for both supply and borrow caps. Consequently, we suggest setting the supply cap at 12

cbBTC, which matches the current total cbBTC liquidity across the 2 pools.

Quick Links

Please click below to learn about our methodologies:

Gauntlet Parameter Recommendation Methodology
Gauntlet Model Methodology

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[Gauntlet]

Given the rapid increase in TVL across DEXs, Gauntlet recommends a further round of cap changes to capture the

Asset	Current Supply Cap	Recommended Supply Cap	Current Borrow Cap	Recommended Borrow Cap
cbBTC	12	110	8	80

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

Supporting Data

cbBTC Liquidity

The cbBTC pools continue to offer exceptionally high APRs, reaching four digits, which should significantly attract more liquidity. Given the substantial growth following the last cap adjustment, we expect these pools’ total value locked (TVL) to continue increasing.

25% Slippage

Given the 25% slippage rate, we recommend aligning the supply caps with this level and setting the borrow caps accordingly.