Summary
Gauntlet recommends supply cap changes for 3 assets on Ethereum v3 and Optimism v3.
Per Gauntlet’s supply and borrow cap methodology, we recommend the following supply cap changes to Ethereum v3 and Optimism v3.
Specifications
| Chain | Asset | Cap | Current | Recommended |
|---|---|---|---|---|
| Ethereum | BAL | SUPPLY | 700000 | 350000 |
| Ethereum | LINK | SUPPLY | 24000000 | 15000000 |
| Optimism | OP | SUPPLY | 20000000 | 10000000 |
Motivation
Cap usages have been historically low and liquidity has declined for several assets - we recommend lowering caps to reduce tail risks. Our dashboard has more color on how caps have continuously evolved over the past few months.
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BAL supply cap usage is at (20%) on Ethereum Aave v3 for the past few months
-
LINK supply cap usage has been at (5%) on Ethereum Aave v3 for the past three months
-
OP supply cap usage has been at 1% on Optimism Aave v3 for the past three months
BAL
LINK
OP
Next Steps
- Initiate AIP on 2023.07.10