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

**URL:** <https://forum.moonwell.fi/t/gauntlet-cbbtc-cap-recommendations-2024-09-12/1220>\
**Category:** Proposals\
**Tags:** base\
**Created:** [September 12, 2024, 7:26pm UTC](https://forum.moonwell.fi/t/gauntlet-cbbtc-cap-recommendations-2024-09-12/1220 "2024-09-12T19:26:53Z")\
**Posts on this page:** 2\
**Page:** 1

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**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:** [September 12, 2024, 7:26pm UTC](https://forum.moonwell.fi/t/gauntlet-cbbtc-cap-recommendations-2024-09-12/1220/1 "2024-09-12T19:26:53Z")

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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](https://forum.moonwell.fi/t/gauntlets-initial-recommendations-for-moonwell-on-base/536) and [proposal](https://gov.moonwell.fi/artemis/proposal/39).

## Supporting Data

### cbBTC Liquidity

 ![Screenshot 2024-09-12 at 1.40.48 PM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/a/ae28c13593a98fd6832733ff0e75eafde03c3f45.png)  
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](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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<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:** [September 12, 2024, 10:25pm UTC](https://forum.moonwell.fi/t/gauntlet-cbbtc-cap-recommendations-2024-09-12/1220/2 "2024-09-12T22:25:53Z")

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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](https://forum.moonwell.fi/t/gauntlets-initial-recommendations-for-moonwell-on-base/536) and [proposal](https://gov.moonwell.fi/artemis/proposal/39).

## Supporting Data

### cbBTC Liquidity

 ![Screenshot 2024-09-12 at 4.05.56 PM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/a/aec1db66ad4725460d3c046eeb17e6223bf46e7b.png)

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**

 ![Screenshot 2024-09-12 at 4.06.15 PM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/6/61eb870278e12545382356956db879500595eeac.png)

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