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# System prepended metadata

title: Gauntlet Guardian - Increase rETH Caps on BASE

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# Gauntlet Guardian - Cap Recommendations on BASE

## Simple Summary

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

|            | Current    | Recommended |
| ---------- | ---------- | ----------- |
| rETH Supply Cap | 500 | 600   |

**Gauntlet will not increase caps on DAI.**

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

## rETH Cap Recommendations

#### Supply Cap Usage
![image](https://hackmd.io/_uploads/Sk41Pl086.png)
rETH collateral usage equates to $346k with most top rETH collateral positions either borrowing recursively or with highly correlated assets. 
#### Top rETH Suppliers
![image](https://hackmd.io/_uploads/rJlRfXR8p.png)

#### rETH Circulating Supply and Holders 
![image](https://hackmd.io/_uploads/ryNAve0Ua.png)
Since our last recommendation, circulating supply of rETH has increase from 780 to 870. 

## DAI Cap Recommendations
#### DAI Circulating Supply and Holders
![image](https://hackmd.io/_uploads/B1b7Sm0La.png)
Gauntlet does not recommend to increase DAI caps based on current on-chain liquidity and current concentration of DAI on the protocol. Gauntlet will continue to monitor market conditions and increase caps once on-chain liquidity improves. Collateral Usage is at $4M with most large collateralize positions having a recursive position. 

### Top DAI Suppliers
![image](https://hackmd.io/_uploads/ry_8nE0UT.png)


#### DEX Liquidity and Cap Usage
| Asset   | Borrow Cap   | Supply Cap   | Borrow Cap Usage   | Supply Cap Usage   | DEX 25pct Slippage Token   | DEX 25pct Slippage USD   |
|:--------|:-------------|:-------------|:-------------------|:-------------------|:---------------------------|:-------------------------|
| DAI     | 6,000,000    | 7,500,000    | 85.10%             | 89.77%             | 2,176,861                  | $2,176,780.33            |
| rETH    | 100          | 500          | 42.97%             | 78.90%             | 483                        | $1,223,618.57            |