# Gauntlet Guardian - Increase wstETH caps on BASE

**URL:** https://forum.moonwell.fi/t/gauntlet-guardian-increase-wsteth-caps-on-base/792
**Category:** Proposals
**Created:** [February 13, 2024, 11:55pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-increase-wsteth-caps-on-base/792 "2024-02-13T23:55:06Z")
**Posts on this page:** 2
**Page:** 1

<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: [February 13, 2024, 11:55pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-increase-wsteth-caps-on-base/792/1 "2024-02-13T23:55:06Z")

</div>

## 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](https://forum.moonwell.fi/t/gauntlets-initial-recommendations-for-moonwell-on-base/536) and [proposal](https://gov.moonwell.fi/artemis/proposal/39).

## Supporting Data

### wstETH Cap Recommendations

**Cap Usage**

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

 ![image](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/e/e1e142420f50f8cb27c8cd998044f0dd4841d323.png)

### 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.

 ![image](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/f/f730ee97cfedb0b04fb5461574cb5856a05a4786.png)

### 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.

 ![image](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/8/8870dfc1f3ce3758c6ceeaeb7c6b8432082552aa.png)

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

 ![image](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/b/b2dda420cafdc436fe7c9e4d28a318a8f9adb82d.png)

### 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 |

---

<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: [February 13, 2024, 11:56pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-increase-wsteth-caps-on-base/792/2 "2024-02-13T23:56:31Z")

</div>

Guardian transactions [1](https://basescan.org/tx/0xd3ac2a3370fe73fc567981b6c25b3787ddcede5007718548987c6aabf186714b#eventlog) and [2](https://basescan.org/tx/0x2b38389baaae040f200eeb9290be7ae0ccbb78eedbf4cf5de7cc49250660aa91#eventlog) were executed on-chain.