Gauntlet's Risk Recommendation - Increase rETH Supply Cap on BASE (Nov 29)

Simple Summary

Gauntlet will use Cap Guardian to increase Supply Cap on rETH.

Current Recommended
Supply Cap 200 265

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

Link to chart

Balancer Swap Slippage Incur

300 of rETH can be swap to WETH for 1% slippage on Balancer.

Balancer’s rETH/WETH pool is overweight with WETH in which this allows relatively low slippage when swapping rETH to WETH in relation to circulating supply of rETH token on-chain (379 rETH). Gauntlet will continue to monitor rETH liquidity.

Since Moonwell listed rETH, rETH has not experience substantial growth of the circulating supply on the BASE chain and the current liquidity source is concentrated within one pool on Balancer. As such, Gauntlet recommends a conservative increase to the supply cap.

Asset Current Supply Cap Supply Cap Usage DEX 1pct Slippage Token DEX 1pct Slippage USD
rETH 200 99% 300 $666k
1 Like

Gauntlet has implemented Cap Guardian and increased rETH Supply Cap to 265.