Gauntlet Guardian - Cap Recommendations for DAI

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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Guardian transaction 1 and transaction 2 have been implemented.

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