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

**URL:** <https://forum.moonwell.fi/t/gauntlet-guardian-cap-recommendations-on-base-2023-12-18/710>\
**Category:** Proposals\
**Tags:** base\
**Created:** [December 18, 2023, 9:57pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-cap-recommendations-on-base-2023-12-18/710 "2023-12-18T21:57:26Z")\
**Posts on this page:** 2\
**Page:** 1

<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:** [December 18, 2023, 9:57pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-cap-recommendations-on-base-2023-12-18/710/1 "2023-12-18T21:57:26Z")

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## 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](https://forum.moonwell.fi/t/gauntlets-initial-recommendations-for-moonwell-on-base/536) and [proposal](https://gov.moonwell.fi/artemis/proposal/39).

## Supporting Data

## rETH Cap Recommendations

#### Supply Cap Usage

 ![image](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/d/da811466ef23595d769c693af49ebb6b58f9ac7a.png)  
rETH collateral usage equates to $346k with most top rETH collateral positions either borrowing recursively or with highly correlated assets.

#### Top rETH Suppliers

 ![image](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/2/25e9ea85feef8ff1e50334e96f4190d33a3b85ec.png)

#### rETH Circulating Supply and Holders

 ![image](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/f/ff78b46231638b2f9f1801f19523c0386fe6db5b.png)  
Since our last recommendation, circulating supply of rETH has increase from 780 to 870.

## DAI Cap Recommendations

#### DAI Circulating Supply and Holders

 ![image](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/b/b4288111502c88ecf2174237e36792cd65b151b4.png)  
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

 ![image](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/8/8b2ca727777cee71ebf74aeb1a25a05366b4d28e.png)

#### 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 |

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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:** [December 18, 2023, 10:51pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-cap-recommendations-on-base-2023-12-18/710/2 "2023-12-18T22:51:05Z")

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Guardian [transaction](https://basescan.org/tx/0x5b7b3d3a4e1ff8db162c5097393d6a575e701d8784dc9f6da0af6974f9fa8647) has been implemented.