Gauntlet - cbETH Recommendations
Given the volatile liquidity on Kyberswap, we recommend revising the caps for cbETH with the below recommendations:
| Asset | Current Supply Cap | Recommended Borrow Cap |
|---|---|---|
| cbETH | 50 | 2 |
Rationale
The 25% slippage for cbETH is about 1,700 USD, indicating extremely poor quality of liquidity which could influence the risk factors for cbETH as collateral.
However, given the liquidity, the current user positions reflect supply only or recursive borrowing against their cbETH collateral. In light of this, we do not observe a high degree of risk and only recommend reducing supply caps for immediate measures.
