Simple Summary
Gauntlet will use Cap Guardian to Change Borrow Caps and Supply caps for USDC and DAI.
| Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap | |
|---|---|---|---|---|
| USDC | 15,000,000 | 20,000,000 | 12,000,000 | 18,200,000 |
| DAI | 2,500,000 | 2,000,000 | 2,000,000 | 1,500,000 |
Gauntlet will be utilizing the Cap Guardians to enact this change as voted by the community within this forum post and proposal.
Supporting Data
USDC Cap Recommendations
Supply Cap and Borrow Cap Usage
The USDC Supply cap and Borrow cap usage has increased over the 75% threshold.
USDC Circulating Supply and Holders
Gauntlet recommends an increase in both the Supply cap to 20,000,000 and Borrow cap to 18,200,000.
The top 10 largest positions supplying USDC are borrowing correlated assets or borrrowing recursively. Gauntlet will continue to monitor these positions closely.
DEX Liquidity and Cap Usage
| Asset | Borrow Cap | Supply Cap | Borrow Cap Usage | Supply Cap Usage | DEX 25pct Slippage Token |
|---|---|---|---|---|---|
| USDC | 12,000,000 | 15,000,000 | 84.33% | 84.6% | 6,688,275 |
DAI Cap Recommendations
DAI Circulating Supply and Holders
Gauntlet recommends a decrease in both the Supply cap to 2,000,000 and Borrow cap to 1,500,000 to prevent concentration risk caused by declining circulating supply on Base.
The largest positions supplying DAI are borrowing correlated assets or borrrowing recursively. There is about 30k DAI that is supplied in non-recursive/non-correlated borrows. Gauntlet will continue to monitor these positions closely.
25% Depth
There is ample liquidity to absorb liquidations with 600k DAI causing 25% slippage.
DEX Liquidity and Cap Usage
| Asset | Borrow Cap | Supply Cap | Borrow Cap Usage | Supply Cap Usage | DEX 25pct Slippage Token |
|---|---|---|---|---|---|
| DAI | 2,500,000 | 2,000,000 | 50% | 55.6 % | 600,000 |
Quick Links
Please click below to learn about our methodologies:
Gauntlet Parameter Recommendation Methodology
Gauntlet Model Methodology
By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos.