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.
