We support an increase of up to 2X the current supply cap.
Once we receive feedback from @Gauntlet on the above recommendations, we will be able to move forward to implement these updates via the Risk Steward process.
Utilizing our supply cap methodology, we conducted stress tests simulating depeg scenarios (up to 15%), yielding the results in the graphs below. With a 2X increase of the supply cap and current liquidity levels, such depeg scenario materializing could lead to protocol losses of ~$500K.
