Simple Summary
Gauntlet will use Cap Guardian to increase Supply Cap on rETH.
| Current | Recommended | |
|---|---|---|
| Supply Cap | 265 | 300 |
Gauntlet will be utilizing the Cap Guardians to enact this change as voted by the community within this forum post and proposal.
Supporting Data
Supply Cap Usage
There has been high demand to supply rETH to the liquidity pool as shown in the supply cap usage over the past weeks. rETH collateral usage equates to $177k with most top rETH collateral positions either borrowing recursively or with highly correlated assets.
Top rETH Suppliers
Our recommendation to increase the supply cap to 300 represents 75% of the circulating supply on BASE chain. Gauntlet cannot recommend a supply cap with greater concentration of rETH unless there is more rETH bridged into the BASE chain.
| Asset | Current Supply Cap | Supply Cap Usage | DEX 2pct Slippage Token | DEX 2pct Slippage USD |
|---|---|---|---|---|
| rETH | 265 | 99% | 300 | $739k |