# Gauntlet Guardian - WETH, wstETH and cbETH cap increases

**URL:** <https://forum.moonwell.fi/t/gauntlet-guardian-weth-wsteth-and-cbeth-cap-increases/853>\
**Category:** Proposals\
**Tags:** base\
**Created:** [April 2, 2024, 9:33pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-weth-wsteth-and-cbeth-cap-increases/853 "2024-04-02T21:33:53Z")\
**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:** [April 2, 2024, 9:33pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-weth-wsteth-and-cbeth-cap-increases/853/1 "2024-04-02T21:33:53Z")

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

## Supporting Data

### WETH Cap Recommendations

**Cap Usage**

The WETH Supply Cap is close to the 75% threshold and WETH Borrow Cap is \>75% utilization

 ![Screenshot 2024-04-02 at 12.58.50 PM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/b/bec85dade625d5e745a614a5ee53f01725fdc2bf.png)

### 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.

 ![Screenshot 2024-04-02 at 1.07.22 PM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/a/ab9bd409b96c65e710b443559e60bdd9f77fcc91.png)

### 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.

 ![depth_2pct_tokens, circulating_supply_tokens by data_date](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/1/160c9304b84ac6ca2f77229363f2e49018620f5e.png)

### cbETH Cap Recommendations

**Cap Usage**

The cbETH Supply and Borrow Cap has increased over the 75% threshold.

 ![Screenshot 2024-04-02 at 3.12.13 PM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/a/aef5a22010f3bda6ff1a0584a5584dd1d5675dfb.png)

### 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.

 ![Screenshot 2024-04-02 at 3.24.15 PM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/3/3bcb63a6bb2598b707a2c1215f784ee99a39168c.png)

### 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.

 ![Screenshot 2024-04-02 at 3.28.08 PM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/d/d65e671a5f40d16da9a7ed62426c7acc5a85bdda.png)

### 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.

 ![Screenshot 2024-04-02 at 3.28.58 PM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/e/eb1abc8d98a402021ea172bc0232088451bd49dd.png)

### wstETH Circulating Supply

wstETH’s circulating supply on Base has also been increasing exponentially since the start of the year with 267% increase YTD.

 ![circulating_supply_tokens by data_date](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/b/b9ebf6228f9b16bfa50d36d7abf6e5891c1644aa.png)

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<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:** [April 2, 2024, 9:38pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-weth-wsteth-and-cbeth-cap-increases/853/2 "2024-04-02T21:38:48Z")

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Guardian [Transaction 1](https://basescan.org/tx/0x5ae5ed3b42fbdc17d2b3a299092d7e3966a6ac89c1e33d050fbf38a9f58a21c7) and [Transaction 2](https://basescan.org/tx/0xaf2397cb47f357135a2bdf0de9aa400b998a502bd70b21fc477032644ff9ff37) have been implemented.