title: [ARFC] Arbitrum USDC Migration author: Gauntlet date: 2023-11-07

Summary

See here for the ARFC and community discussion.

Parameter change recommendations to facilitate the migration of bridged USDC.e to Native USDC on Aave’s Arbitrum deployments.

Motivation

As part of Gauntlet’s work with the Arbitrum Foundation to mitigate risk for the ecosystem while the ecosystem transitions from bridged USDC.e to Native USDC, Gauntlet has proposed adjustments to AAVE on Arbitrum. The adjustments covered in the report can be seen below.

These changes are intended to aid Arbitrum in the community’s transition from USDC.e to USDC.

You can read our full analysis here: https://forum.arbitrum.foundation/t/gauntlets-usdc-e-initial-migration-report/15986/5?u=gauntlet

Specification

• ‘Freeze’ the USDC.e pool.
• Raise the USDC supply cap to 50,000,000.
• Raise the USDC borrow cap to 45,000,000.

Disclaimer

• Gauntlet is compensated by the Arbitrum Foundation to provide recommendations to the major protocols on Arbitrum to facilitate USDC migration. These strategic migration recommendations do not fall under the scope of Gauntlet’s continuous market risk management work for the Aave DAO.
• This proposal is not meant to indicate that the Arbitrum community should mandate the actions of the multi-deployment and self-governed Aave DAO.
• Gauntlet reserves the right to not move forward with any parameter changes recommended in Snapshot polls, if market conditions change meaningfully.

Copyright:

Copyright and related rights waived via CC0.

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