Summary
Gauntlet will use Cap Guardian to increase caps for WETH, wstETH and cbETH
| Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap | |
|---|---|---|---|---|
| WETH | 22,000 | 24,000 | 16,000 | 20,000 |
| cbETH | 6,000 | 7,200 | 1,800 | 2,100 |
| wstETH | 3,000 | 4,000 | 900 | 1,250 |
Gauntlet will be utilizing the Cap Guardians to enact this change as voted by the community within this forum post and proposal.
Supporting Data
WETH Cap Recommendations
Cap Usage
The WETH Supply Cap is close to the 75% threshold and WETH Borrow Cap is >75% utilization
WETH positions
Only 2 positions of the top 10 are borrowing USDC against their WETH collateral. The rest of the positions are borrowing recursively or are borrowing correlated assets. Gauntlet will continue to monitor these positios.
WETH Circulating Supply and 2% Depth
WETH’s circulating supply on Base has also been increasing exponentially along with increasing 2% depth on CEX+DEX providing strong tailwinds for usage.
cbETH Cap Recommendations
Cap Usage
The cbETH Supply and Borrow Cap has increased over the 75% threshold.
cbETH positions
Two positions in the top 10 are borrowing USDC against cbETH, the rest of the positions are borrowing correlated assets. Gauntlet will continue to monitor these positions.
cbETH Circulating Supply
cbETH’s circulating supply on Base has been constant YTD.
wstETH Cap Recommendations
Cap Usage
The wstETH Supply Cap and Borrow Cap has increased over the 75% threshold.
wstETH positions
In the top 3 positions, 2 are borrowing stablecoins against their LST/WETH collateral. These 2 positions have an health factor of 1.52 and 1.23 respectively, while the rest borrowing correlated assets. Gauntlet will continue to monitor these positions.
wstETH Circulating Supply
wstETH’s circulating supply on Base has also been increasing exponentially since the start of the year with 267% increase YTD.
