Gauntlet is aligned with the proposed cap increases.
USDC poses minimal risk. PT-sUSDe-29MAY2025 allows for 20M swap to sUSDe on Pendle with < 1% price impact, and sUSDe can be swapped to stablecoin through DEXes for the same amount at < 1% impact, and so is low risk.PT-USD0+±26JUN2025 allows for 8M swap to USD0++ on Pendle with ~1.5% price impact, but swapping USD0++ to stablecoin relies on one USD0++/USD0 Curve pool, and swapping 6M USD0++ presently results in ~5% price impact. PT-USD0+±26JUN2025’s LLTVs as collateral are presently all 0.84 except for USD0, which is 0.9.
We believe the proposed increase presents relatively low risk, but would caution against future increases until liquidity improves.