Gauntlet Guardian - Increase wstETH caps on BASE

Simple Summary

Gauntlet will use Cap Guardian to increase Borrow and Supply Caps for wstETH.

Current Supply Cap Recommended Supply Cap Current Borrow Cap Recommended Borrow Cap
wstETH 1300 1600 500 700

Gauntlet will be utilizing the Cap Guardians to enact this change as voted by the community within this forum post and proposal.

Supporting Data

wstETH Cap Recommendations

Cap Usage

The wstETH Borrow & Supply Cap has increased over the 75% threshold.

wstETH positions

The largest supplier positions of wstETH either have no debt or are borrowing recursive/correlated assets. Gauntlet will continue to monitor these positions.

Dex Liquidity and wstETH Circulating Supply

The 25th percentile depth for wstETH has been steadily increasing year to date, with over a third of the wstETH supply on Moonwell comfortably absorbed even with a 25% slippage.

wstETH’s circulating supply on Base has also been increasing exponentially since the start of the year with 62% increase YTD.

DEX Liquidity and Cap Usage

Asset Current Borrow Cap Current Supply Cap Borrow Cap Usage Supply Cap Usage DEX 25pct Slippage (Token)
wstETH 500 1300 80.6% 79.2% 588

Guardian transactions 1 and 2 were executed on-chain.