Gauntlet will use Cap Guardian to increase Supply & Borrow Cap on rETH.
There has been high demand to supply and borrow rETH within the liqudity pool. rETH collateral usage equates to $177k with most top rETH collateral positions either borrowing recursively or with highly correlated assets. There is $109k outstanding borrows of rETH and the recommended cap should allow for a further $128k in borrowings.
The top 3 borrow positions have recursive supply positions relative to their outstanding rETH.
Since our last recommendation, circulating supply of rETH has increase from 398 to 435.
|rETH Supply Cap
|rETH Borrow Cap
|DEX 5pct Slippage Token
|DEX 5pct Slippage USD