Gauntlet's Risk Recommendation - Increase wstETH Caps on BASE

Reward rates for wstETH have been updated to help bootstrap liquidity for the market.

wstETH Reward stream Emissions per sec (before) Emissions per sec (after)
WELL Supply-side 0 0.1141111493
WELL Borrow-side 0 0
USDC Supply-side 0 0
USDC Borrow-side 0 0
Total supply (%of supply cap) 0% 25% 50% 75% 100%
wstETH Supply WELL APR ∞% 18.85% 9.43% 6.28% 4.71%

Rewards were shifted from ETH market towards wstETH.

  • ETH market utilization is standing at healthy levels from a risk perspective
  • Reducing rewards by 0.11 WELL/second for ETH is less detrimental relative to other markets
WELL allocation cbETH DAI USDbC USDC ETH wstETH
Supply-side 20.00% 20.00% 0.00% 20.00% 40.00% → 38.00% 0.00% → 2.00%
Borrow-side 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%