Compound proposal would zero supply caps on seven staking-token listings

Gauntlet has posted a governance forum recommendation calling on Compound V3’s ETH Comets to set supply caps to zero for seven liquid-staking and liquid-restaking token listings — specifically any collateral position carrying less than $500,000 in deposits across the Ethereum, Base, Arbitrum, and Optimism deployments.

The seven affected assets are ezETH, pufETH, rETH, and tETH.

A zero cap doesn’t unwind anything already open. As Gauntlet wrote on the forum: “A cap of 0 does not force liquidations, change collateral factors, or restrict withdrawals and repayments. It only prevents new collateral from being deposited. Existing positions continue to function normally and users can exit at will.” The consequence is limited to those seven listings: no new collateral goes in, but nothing currently sitting there gets touched.

The forum post doesn’t establish whether Compound has applied zero caps to comparable listings before.

The arithmetic isn’t complicated. Across all seven listings combined, $1.59 million in collateral sits against a permitted cap of $4.83 million — roughly 33% utilization. The median position holds $204,801; the largest single listing tops out at $414,807. Set against the $109.0 million in total collateral across all ETH Comets, these seven listings account for under 1.5% of the aggregate. The total permitted cap across the seven comes to $4,832,946, meaning actual deployments represent a fraction of what the protocol would theoretically allow.

Gauntlet’s argument isn’t that these assets are dangerous. “The $500K threshold is deliberately coarse,” the firm wrote. “It is not a claim that $500K is the right minimum viable market size, only a floor below which a listing cannot plausibly earn its risk and operational cost.” Whether the monitoring overhead and liquidity support for pools this size genuinely costs more than they return in utility is a judgment call the forum post presents as settled — but it’s Gauntlet’s analysis, not a figure sourced independently here.

ezETH carries the most exposure. It appears across four separate ETH Comets, with a combined $1,054,134 in collateral against a $4,151,278 cap, making it the single largest contributor to the $1.59 million aggregate. All four of those caps would go to zero under the proposal.

For anyone holding these tokens, the practical consequence of the seven affected listings is straightforward: no new collateral deposits permitted on those Compound deployments. Current borrowers using these assets aren’t forced to do anything. They can exit, they can repay — they just can’t add more of the same collateral to shore up a position. Ethereum was trading at $2,519.84 at the time of writing, per CoinGecko, up 8.9% on the day, though that price movement has no bearing on the proposal.

There’s a real trade-off here, even at sub-1.5% of total collateral. Zeroing caps does cut off composability for anyone who specifically wants to use these tokens on Compound. How much that matters depends on who’s actually in those pools.

What the forum post doesn’t include is a vote date or implementation timeline. It’s a recommendation sitting in governance, not an executable action. A formal vote still needs to be scheduled, and then acted on if it passes. Seven listings, $1.59 million in collateral, and no conclusion yet.