Summary
Gauntlet recommends reducing the ezETH supply cap on the Ethereum WETH Comet from 33,163 ezETH to 500 ezETH.
This recommendation is driven by:
- Low supply cap utilization - current usage is ~1.33% of the existing cap.
- Alignment of ezETH headroom with current onchain demand.
The proposed cap remains well above current usage and preserves room for organic growth, while removing oversized headroom that no longer reflects the asset’s profile.
Recommendation
| Market | Asset | Current Supply Cap | Proposed Supply Cap | Current Usage | Current Utilization |
|---|
| Ethereum – WETH Comet | ezETH | 33,163 | 500 | ~442.5 ezETH | ~1.33% |
Rationale
The Ethereum WETH Comet is the only Compound V3 market where ezETH has been allocated meaningful headroom, and it is also the market where the cap is by far the most underutilized relative to current onchain demand:
- Current supply cap: 33,163 ezETH
- Current supplied balance: ~442 ezETH
- Utilization of cap: ~1.33%
Across Gauntlet’s broader collateral-asset reviews, sustained utilization of <5% of an allocated cap over multiple review cycles is a strong signal that the cap should be re-sized to match observed demand. Maintaining an oversized cap on a collateral asset:
- Inflates the theoretical maximum exposure of the protocol to that asset’s tail risks (price manipulation, oracle issues, redemption disruptions).
- Creates an avoidable “headroom overhang” that would need to be reactively unwound under stress.
The new cap preserves headroom for organic growth
At 500 ezETH, the proposed cap is approximately ~88% utilized caps, with room to be revisited upward via a standard supply cap recommendation if demand materializes. This is consistent with Gauntlet’s standard cadence of resizing caps in line with realized utilization.
More details about this proposal can be found here
