Gauntlet's Risk Recommendation - Lower USDbC Caps on BASE

Simple Summary

Gauntlet will use Cap Guardian to lower the Borrow and Supply Cap on USDbC.

Current Recommended
Supply Cap 20,000,000 10,000,000
Borrow Cap 16,000,000 4,000,000

Gauntlet will be utilizing the Cap Guardians to enact this change as voted by the community within this forum post and proposal.

Supporting Data

Gauntlet has been monitoring circulating supply of USDbC within the BASE ecosystem and we have identified a downward trend since the deployment of native USDC:

As a precaution to the eventual migration to native USDC tokens as stated by Circle, we are lowering the caps.

Current Recommended Current Balances Current Usage Recommended Usage
Supply Cap 20,000,000 10,000,000 3,081,129 15.04% 30.8%
Borrow Cap 16,000,000 4,000,000 1,660,840 10.37% 41.15%

Decreasing the caps should not impact growth and capital efficiency of USDbC.

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Hey Community,
USDbC Guardian actions were implemented on-chain.

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