Simple Summary

A proposal to increase supply and borrow caps for the following caps on Aave V3:

• Ethereum - wstETH
• Arbitrum - WBTC, WETH
• Optimism - WBTC, wstETH
• Polygon - LINK, WBTC

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 objective of this proposal is to recommend updated supply and borrow caps for V3 assets that have recently reached over 75% utilization of either cap, and our methodologies allow for an increase of the caps.

The recommendations provided in this proposal were derived using Chaos Labs’ Supply and Borrow Cap Methodology.

The respective governance forum discussion is linked below:

• [ARFC] Chaos Labs Supply and Borrow Cap Updates - 04.21.2023

Specification

The following risk parameter proposal is presented below:

Chain	Asset	Current Supply Cap	Recommended Supply Cap	Current Borrow Cap	Recommended Borrow Cap
Ethereum	wstETH	200,000	No Change	6,000	12,000
Arbitrum	WBTC	2,100	4,200	1,115	No Change
Arbitrum	WETH	35,280	70,000	11,170	20,000
Optimism	wstETH	6,000	12,000	940	No Change
Optimism	WBTC	620	1200	250	No Change
Polygon	LINK	297,640	370,000	163,700	No Change
Polygon	WBTC	1,550	3,100	851	No Change

References

Forum Post

Tests: Ethereum, Polygon , Optimism, Arbitrum

Proposal payload implementation: Ethereum, Polygon , Optimism, Arbitrum

Copyright

Copyright and related rights waived via CC0.