Per Gauntlet’s supply and borrow caps methodology, we recommend the following supply cap increase:
| Chain | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| BASE | cbETH | 2,000 | 3,000 | 200 | No Change |
Motivation:
Gauntlet proposes to increase supply cap for cbETH on BASE v3 market to address the growing supply demand for this strategic LST asset.
Specifications
Supply Cap Usage
Link to chart
cbETH Top Suppliers
The top 3 suppliers of cbETH on Base v3 market are utilizing the asset to borrow WETH.
| Asset | Circulating Supply | DEX 25% Slippage | Global Volume ($) |
|---|---|---|---|
| cbETH | 19,623 | 949 | $2,892,473 |
Next Steps
Once we receive feedback from @ChaosLabs on the above recommendations, we will move forward with Risk Steward actions or Governance.