Warden Risk Recommendations - Supply/Borrow Caps on BASE
Summary
Warden recommends setting supply and borrow caps for USDbC, cbETH and ETH Base markets in line with current usage as a preventive measure.
Specifications
| Market | USDbC | DAI | cbETH | ETH |
|---|---|---|---|---|
| Supply Cap | 40M → 20M ($40M → $20M) |
10M ($10M) |
4’000 → 2’000 ($6.9M → $3.4M) |
10’500 → 5’000 ($17.2M → $8.2M) |
| Borrow Cap | 32M → 10M ($32M → $10M) |
5M ($5M) |
1’200 → 1’000 ($2.1M → $1.7M) |
6’300 → 3’500 ($10M → $5.7M) |
Details
Even though caps are currently within acceptable range relative to liquidity levels on Base chain, we can’t guarantee that market conditions will remain favorable in the future.
As a preventive measure, we recommend setting the caps in line with current supply and borrow usage and updating them more dynamically through the Caps Guardian role.
Our proposed caps leave at least 20% buffer over the max supply and borrow usage of the last 30d. The proposed buffer intends to leave sufficient room for growth while preventing excessive monitoring and frequent updates for the Caps Guardian.
| Market | USDbC | DAI | cbETH | ETH |
|---|---|---|---|---|
| Max total supply (last 30d) | 14’400’000 (36% of current cap) (72% of proposed cap) |
6’000’000 (60% of current cap) |
743 (19% of current cap) (37% of proposed cap) |
3’400 (32% of cap) (68% of proposed cap) |
| Max total borrow (last 30d) | 7’750’000 (24% of current cap) (78% of proposed cap) |
932’000 (19% of current cap) |
309 (26% of current cap) (31% of proposed cap) |
2’400 (38% of cap) (69% of proposed cap) |
| Asset | USDbC | DAI | cbETH | ETH |
|---|---|---|---|---|
| Circulating supply (Base chain) | 123’900’000 ($123.9M) |
23’700’000 ($23.7M) |
22’600 ($38.8M) |
60’850 ($99.5M) |
| 5% depth (Swap for non-correlated asset on base chain) | 2’600’000 ($2.6M) |
375’000 ($375k) |
700 ($1.14M) |
1’350 ($2.1M) |