# Gauntlet Guardian - Cap Recommendations for USDC and wstETH

**URL:** <https://forum.moonwell.fi/t/gauntlet-guardian-cap-recommendations-for-usdc-and-wsteth/756>\
**Category:** Proposals\
**Tags:** base\
**Created:** [January 16, 2024, 8:37pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-cap-recommendations-for-usdc-and-wsteth/756 "2024-01-16T20:37:55Z")\
**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:** [January 16, 2024, 8:37pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-cap-recommendations-for-usdc-and-wsteth/756/1 "2024-01-16T20:37:55Z")

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## 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](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 Cap Recommendations

#### Borrow Cap Usage

The USDC Borrow Cap has increased over the 75% threshold.

 ![image](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/f/f12a0992293a78ab388b119df40308410890e854.png)

### 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.

 ![image](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/b/bc71c13e99d242a283a641d3b61a9a9a2c39c43d.png)

The largest positions supplying USDC are borrowing correlated assets or borrowing recursively. Gauntlet will continue to monitor these positions closely.

 ![image](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/2/23e1a3c49a403717796783df2149ddc90a4c18d1.png)

#### 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.

 ![Screenshot 2024-01-16 at 8.15.07 PM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/3/367002ec11acf3ea3ac21a524e7148b7e6d0f1fa.png)

**Top wstETH Suppliers**

Most top wstETH collateral positions either borrowing recursively or with highly correlated assets.

 ![image](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/0/0589448c5a3f7c65dab0da78754828e8c120283a.png)

#### 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](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:** [January 16, 2024, 9:40pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-cap-recommendations-for-usdc-and-wsteth/756/2 "2024-01-16T21:40:07Z")

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Guardian [transaction 1](https://basescan.org/address/0x60b97bCE4625fC51F913e1151c0191b5e9A95046) and [transaction 2](https://basescan.org/address/0x1D8e0b8F4CEd9262C9ac0c0870BF8B45D74ad9D9) have been implemented.