Gauntlet’s Base Recommendations
Simple Summary
Gauntlet will use Cap Guardian to increase Borrow Caps for wstETH and USDC on Base.
| Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap | |
|---|---|---|---|---|
| USDC | 15,000,000 | No Change | 8,500,000 | 10,000,000 |
| wstETH | 800 | No Change | 160 | 320 |
Gauntlet will be utilizing the Cap Guardians to enact this change as voted by the community within this forum post and proposal.
Supporting Data
USDC Cap Recommendations
Borrow Cap Usage
The USDC Borrow Cap has increased over the 75% threshold.
USDC Circulating Supply and Holders
USDC supply has reverted to being over 160mm to ~190mm now, after fluctuating to 41mm for a brief period. Furthermore, the number of USDC holders has increased exponentially, now exceeding 185,000.
The largest positions supplying USDC are borrowing correlated assets or borrowing 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 |
|---|---|---|---|---|---|
| USDC | 8,500,000 | 15,000,000 | 77% | 52% | 5,091,404 |
wstETH Cap Recommendations
wstETH Circulating Supply and Holders
Gauntlet recommends increasing the Borrow Cap for wstETH to 320 following increase in wstETH holders, followed by favourable liquidity conditions.
Top wstETH Suppliers
Most top wstETH collateral positions either borrowing recursively or with highly correlated assets.
DEX Liquidity and Cap Usage
| Asset | Borrow Cap | Supply Cap | Borrow Cap Usage | Supply Cap Usage | DEX 25pct Slippage Token |
|---|---|---|---|---|---|
| wstETH | 160 | 800 | 93.87%% | 64.79% | 549 |
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.