Simple Summary
Gauntlet will use Cap Guardian to decrease Supply and Borrow caps for DAI.
| Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap | |
|---|---|---|---|---|
| DAI | 5,000,000 | 4,500,000 | 4,500,000 | 3,900,000 |
Gauntlet will be utilizing the Cap Guardians to enact this change as voted by the community within this forum post and proposal.
Supporting Data
DAI Cap Recommendations
Cap Usage
The sustained high utilization of the DAI cap, coupled with diminishing on-chain liquidity, necessitates a reduction in both the supply and borrow caps.
DAI Circulating Supply
The circulating supply of DAI has continued to drop since the last cap recommendation, now sitting at 5.3 million compared to 6.1 million. The recommendations above are made as a preventive measure to avoid accumulating bad debt for the protocol.
The largest positions supplying DAI are borrowing corellated assets or borrrowing recursively. Gauntlet will continue to monitor these positions closely.
DEX Liquidity and Cap Usage
| Asset | Borrow Cap | Supply Cap | Borrow Cap Usage | Supply Cap Usage | DEX 25pct Slippage Token |
|---|---|---|---|---|---|
| DAI | 4,500,000 | 5,000,000 | 83.44% | 97.34% | 417164.52 |
Quick Links
Please click below to learn about our methodologies:
Gauntlet Parameter Recommendation Methodology
Gauntlet Model Methodology
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