Summary
Gauntlet will use Cap Guardian to increase caps for rETH.
| Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap | |
|---|---|---|---|---|
| rETH | 700 | 1000 | 200 | 250 |
Supporting Data
rETH Cap Recommendations
Cap Usage
The rETH Supply and Borrow Caps are >75% utilization.
rETH positions
Of the top 10 suppliers, three positions are supplying with no borrows, four positions are borrowing recursively, and 3 other positions are borrowing stables. The market can absorb the liquidation of all accounts borrowing stablecoins with only 0.2% slippage.
rETH Circulating Supply and Holders
rETH’s circulating supply on Base has also been increasing exponentially with over +50% increase in supply in the past 30 days along with increasing holder base.
Liquidity
The 25% DEX Liquidity has also improved since mid-April with close to 500 rETH needed to cause a 25% slippage.