Summary
Gauntlet recommends setting the supply caps to 0 for four low-demand LST/LRT collateral listings across the WETH Comets on Arbitrum, Base, and Optimism.
Proposed Changes
| Network and Comet | Collateral | Current Supply Cap | Proposed Supply Cap |
|---|
| Arbitrum WETH | ezETH | 582 | 0 |
| Base WETH | ezETH | 237 | 0 |
| Optimism WETH | ezETH | 276 | 0 |
| Optimism WETH | rETH | 99 | 0 |
Setting a supply cap to 0 prevents users from depositing additional units of the affected collateral into the corresponding Comet.
This proposal does not:
- Force liquidations.
- Change collateral or liquidation factors.
- Prevent withdrawals or repayments.
- Affect existing collateral balances.
Existing positions will continue to operate normally, and users will retain the ability to repay debt and withdraw collateral.
Proposal Actions
The proposal sends the following updates through Compound’s governance bridges:
- Set the ezETH supply cap on the Arbitrum WETH Comet to
0, then deploy and upgrade the Comet.
- Set the ezETH supply cap on the Base WETH Comet to
0, then deploy and upgrade the Comet.
- Set the ezETH and rETH supply caps on the Optimism WETH Comet to
0, then deploy and upgrade the Comet.
Additional Information
For the complete motivation, methodology, risk considerations, and supporting data, see the Compound V3 ETH Comets: Zero Supply Caps for Low-Demand LST/LRT Collateral forum post.
