Gauntlet believes this cap increase for stMATIC is premature based on the current implementation for LST Emode. Our methodology, as tailored to how LSTs are currently priced, thresholds the supply cap to 50% of the local supply which in this case is 32m. stMATIC pricing must move to the synchronized price adapter solution, and the community align on potential “killswitches” in the event of stMATIC depeg, for this cap increase to not add excess market risk.
At this current time, Gauntlet would recommend increasing the cap to 32M.