Gauntlet Guardian - Increase Caps on BASE (2023-12-11)

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

Gauntlet has implemented Guardian to increase Caps. Here are the transactions:

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rETH Supply Cap transaction

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