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.