[ARC] - Chaos Labs Supply and Borrow Cap Updates - Aave V3 Polygon and Arbitrum - 2023.02.07

[Llamaxyz]

Hi @WintermuteGovernance,

Please have a read of this proposal here which seeks to change the BAL interest rate.

[ARFC] BAL Interest Rate Upgrade

title: [ARFC] BAL Interest Rate Upgrade Author: @Llamaxyz Dated: 2023-03-22 Summary This publication proposes implementing the next step in the BAL interest rate increase. Abstract Previously, Aave implemented the first stage of increasing the BAL borrowing rate across all deployments. This was performed with the intention of monitoring the market response and revising the rates higher at a later date. This publication presents the next BAL interest rate increase to Aave for discussions…

An extract applicable to the earlier comment is shown below:

	Description	APY	TVL	Network
Aura Finance (Aura Gauge)	B-80BAL-20WETH / auraBAL	58.21%	$21,380,000	Ethereum
Tetu (Balancer Gauge)	B-80BAL-20WETH / tetuBAL	88.77%	$10,220,000	Polygon
Stake DAO (Balancer Gauge)	B-80BAL-20WETH / sdBAL	18.25% - 45.35%	$637,221	Ethereum

We have also just published this proposal to focus the communities discussion on the BAL reserve on Polygon v3. Let’s pivot the discussion across to the thread linked below.

[ARFC] Polygon v3 BAL Supply & Borrow Cap Increase

title: [ARFC] Polygon v3 BAL Supply & Borrow Cap Increase author: @Llamaxyz - @TokenLogic created: 2023-03-28 Summary This publication seeks to increase the BAL Supply and Borrow Caps on Polygon v3 Liquidity Pool. Abstract The BAL Reserve Supply Cap is 85.00% and 96.24% utilised on Polygon v3. Both have been trending higher over time. This publication presents a modest increase to the SupplyCap from 361,000 units to 400,000 units, representing an overal increase of 10.8%. The utilisat…