Summary
We propose increasing Notional’s Mainnet Prime ETH, Prime USDC, Prime WBTC, Prime GHO, and Prime USDT supply caps in response to deposit growth on Mainnet. The proposed increased in supply cap for these tokens will enable the protocol to continue recent TVL growth.
Proposal
To facilitate the growth of the protocol we propose increasing supply caps according to the following table:
| Supply caps | Current | Proposed |
|---|---|---|
| ETH | 2,000 | 5,000 |
| USDC | 10,000,000 | 25,000,000 |
| wBTC | 100 | 250 |
| GHO | 2,000,000 | 4,000,000 |
| USDT | 5,000,000 | 10,000,000 |
Risks
By increasing supply caps, the protocol will effectively take more risk by allowing more ETH, USDC, WBTC, GHO, and USDT to be used as collateral.
Mainnet on-chain liquidity for these tokens currently allows liquidators to liquidate collateral assets with relatively minimal slippage thereby mitigating liquidity concerns.