# Gauntlet Guardian - AERO Cap updates (2024-06-14) **URL:** \ **Category:** Proposals\ **Tags:** base\ **Created:** [June 14, 2024, 10:15pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-aero-cap-updates-2024-06-14/1023 "2024-06-14T22:15:32Z")\ **Posts on this page:** 2\ **Page:** 1
**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:** [June 14, 2024, 10:15pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-aero-cap-updates-2024-06-14/1023/1 "2024-06-14T22:15:32Z")
## 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](https://forum.moonwell.fi/t/gauntlets-initial-recommendations-for-moonwell-on-base/536) and [proposal](https://gov.moonwell.fi/artemis/proposal/39). ## Supporting Data ### AERO Borrowing **Top Suppliers** ![Screenshot 2024-06-14 at 4.41.30 PM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/f/f5cf4f1b5e2a29e51ecfe31c8fffdd0fdb6f1cc5.png) 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. ![Screenshot 2024-06-14 at 4.48.21 PM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/4/47e1ac7c8482482c2aa2f531d9ff16c1d8646506.png) ### AERO Liquidity ![Screenshot 2024-06-14 at 4.43.08 PM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/5/59fb237c1a529cfe6c9642a352d83cef5f52a91b.png) Referring to the risk analysis for AERO caps done in the [previous cap increase](https://forum.moonwell.fi/t/gauntlet-guardian-aero-cap-updates-2024-05-15/934), 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](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._ ---
**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:** [June 14, 2024, 10:16pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-aero-cap-updates-2024-06-14/1023/2 "2024-06-14T22:16:34Z")
Guardian [Transaction 1](https://basescan.org/tx/0x5c5914487f1feaa2d885efbd7f5823ce6463774a4363a9aceb61819536016241) and [Transaction 2](https://basescan.org/tx/0x4553afd363d981762b5790460d1dff952a1707299a510bd980433a0a56910475) have been implemented.