Gauntlet Analysis
From a market risk perspective, Gauntlet supports 20k supply cap for cbETH.
According to our modeling, cbETH would need a ~25% price deviation for debt to start becoming insolvent.
We’d like to bring up the following point to consider, as it may affect the community’s decision -
If emode is enabled for cbETH before the proposed 20k supply cap is reached, then the asset’s risk profile may change. If the community has a particularly conservative risk tolerance (e.g., if the community wants to discount CEX liquidity heavily), then the community may wish to support a smaller supply cap increase to 15k initially.