# Gauntlet Guardian - Increase rETH Caps on BASE

**URL:** <https://forum.moonwell.fi/t/gauntlet-guardian-increase-reth-caps-on-base/699>\
**Category:** Proposals\
**Tags:** base\
**Created:** [December 7, 2023, 10:30pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-increase-reth-caps-on-base/699 "2023-12-07T22:30:28Z")\
**Posts on this page:** 2\
**Page:** 1

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**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 7, 2023, 10:30pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-increase-reth-caps-on-base/699/1 "2023-12-07T22:30:28Z")

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## Simple Summary

Gauntlet will use Cap Guardian to increase Supply & Borrow Cap on rETH.

| | Current | Recommended |
| --- | --- | --- |
| Supply Cap | 300 | 330 |
| Borrow Cap | 50 | 100 |

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

#### Supply and Borrow Cap Usage

 ![image](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/f/fec9c97c5e7bb8d8373cfe0dcf0aa6f83fc3d915.png)  
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.

### Top rETH Suppliers

 ![image](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/e/e8672082714520ecfd2041571d209dd5e2b59f89.png)

### Top rETH Borrows

 ![image](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/f/f1cc2d5a21e079a30bc3c6e41ebf0ecfe54bc717.png)  
The top 3 borrow positions have recursive supply positions relative to their outstanding rETH.

### rETH Circulating Supply and Holders

 ![image](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/b/b170f326c4dd66f0819d3265cc7e9b8914d21758.png)  
Since our last recommendation, circulating supply of rETH has increase from 398 to 435.

| Asset | Current | Cap Usage |
| --- | --- | --- |
| rETH Supply Cap | 300 | 90% |
| rETH Borrow Cap | 50 | 84% |

| Asset | DEX 5pct Slippage Token | DEX 5pct Slippage USD |
| --- | --- | --- |
| rETH | 400 | $1,026,492 |

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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 7, 2023, 10:45pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-increase-reth-caps-on-base/699/2 "2023-12-07T22:45:30Z")

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Gauntlet Guardian for rETH cap recommendations.

> **[BaseScan Transaction Hash (Txhash) Details | Base](https://basescan.org/tx/0xaa4677628bff0b41c4fbb9c31691f07268dea87806f6f4f7c746699402e37cef)**
>
> BaseScan detailed transaction info for txhash 0xaa4677628bff0b41c4fbb9c31691f07268dea87806f6f4f7c746699402e37cef. The transaction status, block confirmation, gas fee, ETH, and token transfer are shown.

> **[BaseScan Transaction Hash (Txhash) Details | Base](https://basescan.org/tx/0x846e22ad611c2e98194d36f71bcbb665d32a2c1eb61d7e02aeab251688d81117)**
>
> BaseScan detailed transaction info for txhash 0x846e22ad611c2e98194d36f71bcbb665d32a2c1eb61d7e02aeab251688d81117. The transaction status, block confirmation, gas fee, ETH, and token transfer are shown.