# Gauntlet Guardian - wstETH cap recomendations

**URL:** <https://forum.moonwell.fi/t/gauntlet-guardian-wsteth-cap-recomendations/776>\
**Category:** Proposals\
**Created:** [February 5, 2024, 9:16pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-wsteth-cap-recomendations/776 "2024-02-05T21:16:41Z")\
**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 5, 2024, 9:16pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-wsteth-cap-recomendations/776/1 "2024-02-05T21:16:41Z")

</div>

### Simple Summary

Gauntlet will use Cap Guardian to increase Borrow Caps and Supply caps for wstETH.

| | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
| --- | --- | --- | --- | --- |
| wstETH | 1000 | 1300 | 350 | 500 |

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/8/8e01ec56da529302858e1ecdb5605ce3a8e0e21e.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/a/a5ebc7cb1a081b50b25013b634cf3b96b6a1800f.png)

#### Dex Liquidity

The 25pct Depth for wstETH has also been increasing steadily YTD.

 ![image](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/9/9b1321266ed40f425889f91f0ad89afc60fd5cbc.png)

#### DEX Liquidity and Cap Usage

| Asset | Current Borrow Cap | Current Supply Cap | Borrow Cap Usage | Supply Cap Usage | DEX 25pct Slippage Token |
| --- | --- | --- | --- | --- | --- |
| wstETH | 350 | 1000 | 91.4% | 82.4% | 593.95 |

---

<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 5, 2024, 10:51pm UTC](https://forum.moonwell.fi/t/gauntlet-guardian-wsteth-cap-recomendations/776/2 "2024-02-05T22:51:09Z")

</div>

Guardian transactions [1](https://basescan.org/tx/0x12b0e64eadfca37a104bd4888bf75c8704c6e0d6392fa66b1bf07fbb43679318#eventlog) and [2](https://basescan.org/tx/0x3698e040110c977298b021091276da4bdb6a84ef24147bb6c2578663c090b355#eventlog) were executed on-chain.