---
# System prepended metadata

title: Increase rETH Supply Cap on BASE (2023-12-13)

---

# Gauntlet Guardian - Increase rETH Supply Cap on BASE

## Simple Summary

Gauntlet will use Cap Guardian to increase Supply Cap on rETH.

|            | Current    | Recommended |
| ---------- | ---------- | ----------- |
| Supply Cap | 400 | 500   |

Gauntlet will be utilizing the Cap Guardians to enact this change as voted by the community within this forum [post](https://forum.moonwell.fi/t/gauntlets-initial-recommendations-for-moonwell-on-base/536) and [proposal](https://gov.moonwell.fi/artemis/proposal/39). 

## Supporting Data
#### Supply and Borrow Cap Usage
![image](https://hackmd.io/_uploads/BygF8AHv8a.png)
Since our last Guardian action to increase rETH supply caps, there continues to be ramp up demand to supply rETH to the liquidity pool. 
### Top rETH Suppliers
![image](https://hackmd.io/_uploads/rJvjRBPLT.png)
The top 3 suppliers of rETH either have no debt position or borrowing the base token ETH. 


### rETH Circulating Supply and Holders 
![image](https://hackmd.io/_uploads/BJbqe8P86.png)

Since our last recommendation, circulating supply has increased from 736 to 780 on the BASE chain. 
 

| Asset   | Borrow Cap   | Supply Cap   | Borrow Cap Usage   | Supply Cap Usage   | DEX 5pct Slippage Token   | DEX 25pct Slippage USD   |
|:--------|:-------------|:-------------|:-------------------|:-------------------|:---------------------------|:-------------------------|
| rETH    | 100          | 400          | 43.68%             | 98.83%             | 330                        | $826k            |

DEX 5% slippage for rETH within the Balancer Pool has decreased since our last recommendation. We will keep monitoring this but there is still substantial liquidity relative to current Borrow Usage of $329k and Borrowing Power of $728k. 