Gauntlet Moonwell Base Update (08-10-2023)

Hey Community,

We are posting to the forum an update on our monitoring of the caps on Moonwell BASE. Given the current conditions on BASE, characterized by rapid growth in Total Value Locked (TVL) and on-chain liquidity, we have opted to maintain the caps at the present threshold. This decision aims to encourage potential large positions to transition to the protocol.

We have observed strong growth in liquidity for both USDbC and cbETH on platforms such as BASESwap, Sushiswap, and Uniswap. Furthermore, the continuous increase in assets being bridged to the chain reinforces our thoughts that the capital efficiency benefit to Moonwell on BASE outweighs the associated risks.

Here are some key data points that have informed our decision in the thread:

TVL growth rate on the protocol has been averaging ~7.75% since Aug 4th, with larger growth recently. BASE TVL is around $160M.

Current Asset Liquidity and Circulating Supply:

Assets Base Contracts Circulating Supply Market Cap 25% Liquidity Depth on BaseSwap
USDbC $1.00 | USD Base Coin (USDbC) Token Tracker | Base 20,042,651 $20M
WETH Wrapped Ether (WETH) Token Tracker | Base 19,000.65 $35M ETH → USDbC 400 (~25% slippage) 700 (~25% slippage on Baseswap) (75% growth since yesterday)
cbETH $1,935.51 | Coinbase Wrapped Staked ETH (cbETH) Token Tracker | Base 1,603 $2.9M cbETH → ETH 44 (25% slippage) Uniswap 500 (~25% slippage on Baseswap) (25% growth since yesterday)

Next Steps:

  • Continue to monitor BASE chains liquidity and TVL growth and Moonwell BASE protocol positions.
  • Ready to modify caps if there is any signal of increase risk exposure or slow down in growth on the chain.