Supply and Borrow Caps Update - LUSD - v3 Ethereum
Summary
A proposal to increase the LUSD supply cap to 6M and the borrow cap to 2.4M.
Motivation
LUSD is currently at ~96% of its supply cap and ~89% of its borrow cap on Aave V3 Ethereum. This increase in supply and borrow has happened over the past few days following the de-peg events of several stablecoins, including LUSD.
Given the on-chain liquidity levels, current conservative caps set, and the fact that LUSD is a non-collateral asset, we recommend doubling the supply and borrow cap.
The proposal represents a 100% increase from the current caps, making this ARFC compliant with the “direct-to-AIP” framework.
Specification
Ticker: LUSD (LUSD)
Contract Address: 0x5f98805A4E8be255a32880FDeC7F6728C6568bA0
| Parameter | Current | Proposed |
|---|---|---|
| Supply Cap | 3M | 6M |
| Borrow Cap | 1.2M | 2.4M |
References
Copyright
Copyright and related rights waived via CC0.
| Voter | Cast Power | Vote & Rationale |
|---|---|---|
 0x329c...543eD4 | 225,528 | YAE |
 FranklinDAO (Prev. Penn Blockchain) | 107,314 | YAE |
 0x62a4...96816a | 81,588 | YAE |
 0xB83b...Fbcf5C | 80,176 | YAE |
 Wintermute Governance | 41,674 | YAE |
VOTE POWER
Proposal Status
- Published Onchain
0xbC54...ba7dF0 - Thu March 16 2023, 06:00 pmVoting Period Starts
- Sun March 19 2023, 10:43 amEnd Voting Period
- Sun March 19 2023, 10:44 amQueue Proposal
- Mon March 20 2023, 10:44 amExecute Proposal
Current Results
1-YAE
563,814
2-NAY
0.1