Simple Summary
Gauntlet will use Cap Guardian to increase the Supply and Borrow Cap for AERO.
| Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|
| AERO | 12,000,000 | 16,000,000 | 8,000,000 | 10,000,000 |
Gauntlet will be utilizing the Cap Guardian to enact this change as voted by the community within this forum post and proposal.
Supporting Data
AERO Borrowing
Top Suppliers
4 out of the top 10 AERO suppliers have no debt. The rest of the positions are borrowing USDC against a blended WETH-AERO collateral.
Top Borrowers
The largest borrow positions are supplying USDC or WETH or both as collateral to borrow AERO. Gauntlet will continue to monitor these positons.
AERO Liquidity
Referring to the risk analysis for AERO caps done in the previous cap increase, the current 25% DEX slippage is at 20M tokens, the recommended supply cap increase at 16M is well tolerated within the current liquidity levels and accounts for sufficient buffer to accommodate future AERO emissions or liquidity crunches.
Quick Links
Please click below to learn about our methodologies:
Gauntlet Parameter Recommendation Methodology
Gauntlet Model Methodology
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.