[Gauntlet] Supply Cap & COMP Incentive Recommendations
01Summary
Gauntlet proposes to reduce tETH supply caps from 10,000 to 5,000 on Mainnet WETH and wstETH Comets, enable cbBTC on Base USDS with a 450 supply cap, and reduce Base USDS daily COMP incentives from 24 to 20.
- Type
- parameter change
Key changes
- Reduce tETH supply cap on Mainnet wstETH Comet from 10,000 to 5,000(medium)
- Reduce tETH supply cap on Mainnet WETH Comet from 10,000 to 5,000(medium)
- Enable cbBTC on Base USDS with new supply cap of 450 (current: 0)(medium)
- Reduce Base USDS daily COMP supply rewards from 24 to 20(medium)
Generated by Kvorum
02Description
[Gauntlet] Supply Cap & COMP Incentive Recommendations
Simple Summary
Supply Cap Recommendations for tETH on Mainnet WETH and wstETH Comets
| Status | Comet | Asset | Supply Cap |
|---|---|---|---|
| Current | Mainnet wstETH | tETH | 10,000 |
| Proposed | Mainnet wstETH | tETH | 5,000 |
| Current | Mainnet WETH | tETH | 10,000 |
| Proposed | Mainnet WETH | tETH | 5,000 |
Supply Cap Recommendations for cbBTC on Base USDS
| Status | Comet | Asset | Supply Cap |
|---|---|---|---|
| Current | Base USDS | cbBTC | 0 |
| Proposed | Base USDS | cbBTC | 450 |
[Gauntlet] Recommendations for Base USDS Incentives
| Status | Comet | Daily COMP Supply Rewards |
|---|---|---|
| Current | Base USDS | 24 |
| Proposed | Base USDS | 20 |
Motivation
Full proposals and forum discussions can be found in the following posts.
- [Gauntlet] Supply Cap Recommendations for tETH on Mainnet WETH and wstETH Comets
- [Gauntlet] Supply Cap Recommendations for cbBTC on Base USDS
- [Gauntlet] Recommendations for Base USDS Incentives
Specification
The proposal updates the parameters by using the respective methods on the Configurator.
By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.xyz/tos
03Mismatch analysis
I compared the four tables/claims in the description against the four decoded actions. The tETH supply cap reduction (10,000 → 5,000) on two mainnet comets is faithfully implemented: two updateAssetSupplyCap calls set newSupplyCap to 5000e18 (5,000 tokens with 18 decimals, matching the claimed value), each paired with a deployAndUpgradeTo call to finalize the change on the respective comet proxy — this is routine and consistent. However, the description also claims two additional changes: raising the cbBTC supply cap on Base USDS from 0 to 450, and reducing Base USDS daily COMP incentives from 24 to 20. Neither of these appears in the calldata at all — there is no Base-chain action, no cbBTC-related call, and no reward configuration call. This means half of the proposal's stated changes (2 of 4 claimed parameter updates) would not actually execute if this proposal passes, despite being presented as part of the same package. This is a significant gap between what delegates are told will happen and what the calldata will actually do, warranting a material discrepancy flag so voters are aware the cbBTC and incentive changes are not included in this particular on-chain execution.
Discrepancies
- highextra in description
The description proposes increasing the cbBTC supply cap on the Base USDS Comet from 0 to 450, but no corresponding action (e.g., updateAssetSupplyCap for cbBTC on the Base USDS comet, nor any Base-chain action) appears anywhere in the decoded calldata. All four decoded actions are on Ethereum mainnet (chain 0x1) and relate only to the tETH asset.
“| **Proposed** | Base USDS | cbBTC | 450 |”
- highextra in description
The description proposes reducing the Base USDS daily COMP supply rewards from 24 to 20, but no reward-configuration call (e.g., setRewardConfig or similar) appears in the decoded calldata. Only tETH supply cap updates and their associated comet upgrades are present.
“| **Proposed** | Base USDS | 20 |”
Generated by Kvorum
04Actions
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- updateAssetSupplyCap(address,address,uint128)
- Arguments
{ "asset": "0xD11c452fc99cF405034ee446803b6F6c1F6d5ED8", "cometProxy": "0xA17581A9E3356d9A858b789D68B4d866e593aE94", "newSupplyCap": "5000000000000000000000" }- Calldata
- Target
- 0x1ec6…8779
- Value
- 0 wei
- Function
- deployAndUpgradeTo(address,address)
- Arguments
{ "cometProxy": "0xA17581A9E3356d9A858b789D68B4d866e593aE94", "configuratorProxy": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- updateAssetSupplyCap(address,address,uint128)
- Arguments
{ "asset": "0xD11c452fc99cF405034ee446803b6F6c1F6d5ED8", "cometProxy": "0x3D0bb1ccaB520A66e607822fC55BC921738fAFE3", "newSupplyCap": "5000000000000000000000" }- Calldata
- Target
- 0x1ec6…8779
- Value
- 0 wei
- Function
- deployAndUpgradeTo(address,address)
- Arguments
{ "cometProxy": "0x3D0bb1ccaB520A66e607822fC55BC921738fAFE3", "configuratorProxy": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3" }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
- [Gauntlet] Recommendations for Base USDS Incentives ↗discourse · high confidence
- [Gauntlet] Supply Cap Recommendations for cbBTC on Base USDS ↗discourse · high confidence
- [Gauntlet] Supply Cap Recommendations for tETH on Mainnet WETH and wstETH Comets ↗discourse · high confidence
Arguments for
- The Base USDS Comet has achieved near-optimal utilization (83.74%) close to the kink, demonstrating that current incentive levels are excessive and can be safely reduced.— Gauntlet
- Reducing supply incentive APY by 50 basis points will drive utilization closer to the kink while generating $62,123 in annual COMP savings (17% reduction) at current prices.— Gauntlet
- Lower incentives will align the market more closely with an unincentivized state, facilitating natural interest rate discovery while reducing protocol costs.— Gauntlet
Arguments against
None surfaced.
Notable participants
- GauntletProposer presenting supply cap and COMP incentive recommendations for Base USDS Comet.
Generated by Kvorum
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