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## Simple Summary

Gauntlet will use Cap Guardian to Change Borrow Caps and Supply caps for USDC.

|           |Current Supply Cap| Recommended Supply Cap | Current Borrow Cap   | Recommended Borrow Cap|
| ----------|-- |--| ---------- | ----------- |
| USDC   |20,000,000| 40,000,000| 18,200,000 | 36,400,000   |


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

### USDC Cap Recommendations

#### Supply Cap and Borrow Cap Usage

The USDC Supply cap and Borrow cap usage has increased over the 75% threshold.


#### USDC Circulating Supply and Holders 


Gauntlet recommends an increase in both the Supply cap to 20,000,000 and Borrow cap to 18,200,000. 

The top 10 largest positions supplying USDC are borrowing correlated assets or borrrowing recursively. Gauntlet will continue to monitor these positions closely.

![image](https://hackmd.io/_uploads/SyqX_Zy1A.png)


USDC Supply has increased exponentially in the past few days with equal increase in holders signalling strong demand for this asset. 

![Screenshot 2024-03-25 at 9.37.08 AM](https://hackmd.io/_uploads/BJSX3bk1A.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   |
|:--------|:-------------|:-------------|:-------------------|:-------------------|:---------------------------|:-------------------------|
| USDC    | 18,200,000   | 20,000,000   | 79.29%             | 99.98%             | 6,913,693                  | $6,913,850.36            |

## Quick Links

*Please click below to learn about our methodologies:*

[Gauntlet Parameter Recommendation Methodology](https://medium.com/gauntlet-networks/gauntlets-parameter-recommendation-methodology-8591478a0c1c)
[Gauntlet Model Methodology](https://medium.com/gauntlet-networks/gauntlets-model-methodology-ea150ff0bafd)

*By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos.*