# Gauntlet Guardian - Cap Recommendations for USDC and WETH

**URL:** https://forum.moonwell.fi/t/gauntlet-guardian-cap-recommendations-for-usdc-and-weth/918
**Category:** Proposals
**Tags:** base
**Created:** [May 8, 2024, 8:31pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-cap-recommendations-for-usdc-and-weth/918 "2024-05-08T20:31:57Z")
**Posts on this page:** 2
**Page:** 1

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### 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: [May 8, 2024, 8:31pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-cap-recommendations-for-usdc-and-weth/918/1 "2024-05-08T20:31:57Z")

</div>

### Simple Summary

Gauntlet will use Cap Guardian to increase the Supply and Borrow Cap for USDC and WETH.

| Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
| --- | --- | --- | --- | --- |
| USDC | 56,000,000 | 75,000,000 | 52,000,000 | 70,000,000 |
| WETH | 40,000 | 50,000 | 28,000 | 40,000 |

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

### USDC Circulating Supply

The circulating supply of USDC has experienced a tenfold increase since March, and it continues to witness a sustained surge on Base, accompanied by an exponential rise in the number of holders.

 ![Screenshot 2024-05-08 at 1.53.41 PM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/c/cb6b65bd5d85bf69f8db3759ac019d1f9067cee4.png)

### USDC Borrowing

Of the top 10 largest suppliers on USDC, 3 positions are borrowing non-stables, one of them being AERO, and the largest position borrowing WETH. There is sufficient liquidity to absorb these positions in the market. Gauntlet will continue to monitor all positions.

 ![Screenshot 2024-05-08 at 1.39.02 PM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/b/b4a4f07219da7ffb4109e8fd5b6638f0ddfbaf84.png)

### WETH Liquidity

WETH on-chain liquidity has a 25% slippage of 11,000 WETH ($33,000,000), however CEX liquidity has been ranging between 80-120M USD.

 ![Screenshot 2024-05-08 at 2.11.45 PM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/a/a3760bac848700d36b20fd605df261ee8fe15474.png)

### WETH Positions

4 of the top 10 positions are borrowing USDC and 1 position is only supplying assets. The rest are borrowing recursively. There is sufficient liquidity to absorb positions that are borrowing stablecoins.

 ![Screenshot 2024-05-08 at 2.08.44 PM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/2/248bbe45bd868eadbf9bc109b702fe08536ad1bf.png)

### 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._

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<div class="post-metadata">

### 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: [May 8, 2024, 8:33pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-cap-recommendations-for-usdc-and-weth/918/2 "2024-05-08T20:33:26Z")

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Guardian [transaction 1](https://basescan.org/tx/0xb13500189ff78bc41efadd8609a1a2da327161c46b6e98cef711c36ec501ee5f) and [transaction 2](https://basescan.org/tx/0x30f6bc2453832a8213de5287d10389e43fc765f018916a6e0becb8b82d7c99b3) were implemented