Gauntlet Market Alerts (Mar 2023)

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The community is actively discussing asset supply cap utilization across different protocols, with BTC.b at 100% on Avalanche V3 and high utilization rates for SUSHI, stMATIC, and wstETH on Polygon V3. Despite significant liquidation events on Aave V2 and Arbitrum v3, no insolvency occurred, and despite high utilization, no current recommendations are made to increase supply caps.

The community has been actively discussing the utilization of various asset supply caps across different protocols. Seawolf reported that the BTC.b asset supply cap utilization is at 100% on Avalanche V3, with a supply cap and amount of 5,800K ($129.6M)1. Similarly, Pauljlei provided an update on MaticX and stMATIC supply cap recommendations due to 100% cap usage2. However, Gauntlet does not recommend increasing BTC.b’s supply cap despite its full utilization3.

In addition to supply cap discussions, there have been several significant liquidation events reported. Seawolf reported a $748k liquidation on Aave V2, where the account used USDC as collateral to borrow WETH4. Another large liquidation event was reported on Aave V2, amounting to $7.5M, where the account used stETH collateral to borrow WBTC6. Furthermore, Seawolf reported a $172k liquidation on the Arbitrum v3 market10. In all these cases, no insolvency occurred from these liquidation events.

The community has also been monitoring the utilization rates of various assets. For instance, the SUSHI asset borrow cap usage is at 76% on Polygon V38, and the stMATIC supply cap usage is at 77% on Polygon V39. The wstETH supply cap usage is at 75.62%11, and the utilization rates for WAVAX’s supply cap and borrow cap on Avalanche Aave v3 are currently at 78% and 100%, respectively12. Despite these high utilization rates, Wfu stated that they do not recommend increasing the supply cap at this time in light of the Shanghai upgrade13. The community will continue to monitor these markets and make further recommendations as necessary.

Posted 9 months ago

Last reply 8 months ago

Summary updated 2 months ago

Last updated 04/12 00:18