Simple Summary

A proposal to adjust eleven (11) total risk parameters, including Supply Cap and Borrow Cap, across seven (7) Aave V3 Polygon and Arbitrum assets.

Motivation

The objective of this proposal is to recommend updated supply and borrow caps for V3 assets that have reached high utilization of either cap. The recommendations provided in this proposal were derived using Chaos Labs’ Updated Supply and Borrow Cap Methodology

The respective governance forum discussion is linked below:

• Chaos Labs Supply and Borrow Cap Updates - Aave V3 Polygon and Arbitrum - 2023.02.07

Specification

The following risk parameter proposal is presented below:

Polygon

Asset	Current Supply	Current Supply Cap	Recommended Supply Cap	Current Borrow	Current Borrow Cap	Recommended Borrow Cap
BAL	284,600	284,600	361,000	136,400	256,140	No Change
EURS	2,060,000	2,000,000,000	4,000,000	728,530	728,530	947,000
DAI	5,680,000	2,000,000,000	45,000,000	3,160,000	3,860,000	30,000,000
USDC	35,590,000	2,000,000,000	150,000,000	18,600,000	30,680,000	100,000,000
USDT	5,940,000	2,000,000,000	45,000,000	4,870,000	5,060,000	30,000,000

Arbitrum

Asset	Current Supply	Current Supply Cap	Recommended Supply Cap	Current Borrow	Current Borrow Cap	Recommended Borrow Cap
LINK	338,490	350,000	676,980	$763,400	20,427	No Change
ETH	17,640	20,300	35,280	3,663	11,165	No Change

References

Forum Post

Tests: Arbitrum, Polygon

Proposal payload implementation - Arbitrum, Polygon

Deployed proposal payload - Arbitrum, Polygon

Copyright

Copyright and related rights waived via CC0.