Gauntlet Guardian - Cap Recommendations on BASE - 2023-12-18

Simple Summary

Gauntlet will use Cap Guardian to increase Supply Cap on rETH:

Current Recommended
rETH Supply Cap 500 600

Gauntlet will not increase caps on DAI.

Gauntlet will be utilizing the Cap Guardians to enact this change as voted by the community within this forum post and proposal.

Supporting Data

rETH Cap Recommendations

Supply Cap Usage

rETH collateral usage equates to $346k with most top rETH collateral positions either borrowing recursively or with highly correlated assets.

Top rETH Suppliers

rETH Circulating Supply and Holders

Since our last recommendation, circulating supply of rETH has increase from 780 to 870.

DAI Cap Recommendations

DAI Circulating Supply and Holders

Gauntlet does not recommend to increase DAI caps based on current on-chain liquidity and current concentration of DAI on the protocol. Gauntlet will continue to monitor market conditions and increase caps once on-chain liquidity improves. Collateral Usage is at $4M with most large collateralize positions having a recursive position.

Top DAI Suppliers

DEX Liquidity and Cap Usage

Asset Borrow Cap Supply Cap Borrow Cap Usage Supply Cap Usage DEX 25pct Slippage Token DEX 25pct Slippage USD
DAI 6,000,000 7,500,000 85.10% 89.77% 2,176,861 $2,176,780.33
rETH 100 500 42.97% 78.90% 483 $1,223,618.57

Guardian transaction has been implemented.