Response to Chaos Recommendations
Per Gauntlet’s supply and borrow cap methodology, we support the recommended cap increases. Gauntlet supports a higher cap increase of 100k for rETH on Ethereum.
| Asset | Chain ID | Current Supply Cap | New Supply Cap | Current Borrow Cap | New Borrow Cap |
|---|---|---|---|---|---|
| rETH | Ethereum | 60,000 | 100,000 | 19,200 | No Change |
| rETH | Arbitrum | 3,400 | 5,100 | 1360 | No Change |
| LINK | Optimism | 210,000 | 235,000 | 84,000 | No Change |
| CRV | Ethereum | 7,500,000 | 10,000,000 | 5,000,000 | No Change |
Based on the communities’ preference for aggressive caps for LINK. Gauntlet supports the recommendation of 235k based on across chain liquidity. 25% DEX slippage for LINK on OP chain is currenlty at 43k.
Gauntlet recommends increasing the supply cap to 100k based on user positions and on-chain liquidity. rETH’s collateral usage on the Ethereum v3 market is near $43M with most of the large debt positions not borrowing WETH. As such, Gauntlet will continue to monitor rETH positions post cap increase.
Link to dashboard
With CRV having a debt ceiling of $1M, Gauntlet supports the increase of supply cap to 10M based on the limited exposure of CRV as collateral and overall ample cross chain liquidity for CRV.