Simple Summary
Gauntlet will use Cap Guardian to increase Supply & Borrow Cap on BASE:
| Current | Recommended | |
|---|---|---|
| wstETH Supply Cap | 500 | 800 |
| cbETH Supply Cap | 4000 | 6000 |
| rETH Supply Cap | 330 | 400 |
| WETH Borrow Cap | 6300 | 8000 |
Gauntlet will be utilizing the Cap Guardians to enact this change as voted by the community within this forum post and proposal.
Supporting Data
Supply Cap Usage
The demand for liquid staking tokens (LSTs) on the Moonwell Base Market has been steadily increasing since mid-November, with supply reaching near-full capacity.
WETH Borrow Cap Usage
Borrowing Demand for WETH has been increacing across the protocol since mid November. One of the factors driving this demand is the inflow of LSTs into the protocol to utlize the LPs for leverage LST yield strategy.
Borrow Balance USD by User Type
On-chain Liquidity and Cap Usage
| Asset | Borrow Cap | Supply Cap | Borrow Cap Usage | Supply Cap Usage | DEX 25pct Slippage Token | DEX 25pct Slippage USD | Circulating Supply |
|---|---|---|---|---|---|---|---|
| rETH | 100 | 330 | 43.64% | 98.30% | 499 | $1,284,214.49 | 736 |
| cbETH | 1,000 | 4,000 | 66.42% | 84.85% | 684 | $1,696,178.50 | 19,793 |
| WSTETH | 160 | 500 | 32.45% | 94.22% | 597 | $1,613,625.47 | 2,671 |
| WETH | 6,300 | 10,500 | 75.03% | 61.75% | 2,802 | $6,587,649.10 | 31,120 |