# ezETH Supply Cap Reduction Recommendation on Ethereum WETH Comet\n## Summary\n\nGauntlet recommends reducing the ezETH supply cap on the Ethereum WETH Comet from **33,163 ezETH** to **500 ezETH**.\n\nThis recommendation is driven by:\n\n1. Low supply cap utilization - current usage is **~1.33%** of the existing cap.\n2. Alignment of ezETH headroom with current onchain demand.\n\nThe proposed cap remains well above current usage and preserves room for organic growth, while removing oversized he
AI summary
This proposal recommends reducing the supply cap for ezETH, a type of liquid restaking token, on Compound's Ethereum WETH Comet market. The current cap is 33,163 ezETH, but only about 442 ezETH is currently being used, representing a very low utilization rate of 1.33%. The proposal suggests lowering the cap to 500 ezETH to better align with actual demand and reduce potential risks.
If this proposal passes, the maximum amount of ezETH that can be supplied to the WETH Comet market will be significantly reduced. This change aims to decrease the protocol's theoretical exposure to risks associated with ezETH and streamline operations. Users who wish to supply more than 500 ezETH to this market would be unable to do so, potentially limiting future growth if demand for ezETH as collateral increases rapidly.