# \[ARC\] Gauntlet Recommendations for LUSD ETH v3 **URL:** \ **Category:** Risk\ **Created:** [May 10, 2023, 3:42am UTC](https://governance.aave.com/t/arc-gauntlet-recommendations-for-lusd-eth-v3/13039 "2023-05-10T03:42:39Z")\ **Posts on this page:** 6\ **Page:** 1
**Author:** ![seawolf](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/seawolf/32/3490_2.png) [@seawolf](https://governance.aave.com/u/seawolf)\ **Post date:** [May 10, 2023, 3:42am UTC](https://governance.aave.com/t/arc-gauntlet-recommendations-for-lusd-eth-v3/13039/1 "2023-05-10T03:42:39Z")
## Simple Summary The supply and borrow caps have been exceeded by the following asset, surpassing the 75% threshold. - **LUSD borrow cap (79%) on ETH v3.** In accordance with our Borrow and Supply Cap [Methodology](https://governance.aave.com/t/gauntlet-methodologies-borrow-and-supply-cap/11487), Gauntlet would like to raise the cap of the above asset to the following: - **Increase LUSD Borrow Cap to 4M on ETH v3.** ## Specifications #### ETH v3 | Asset | Current Cap | Borrow Cap Recommendation | | --- | --- | --- | | LUSD | 2.4M | 4M | ![](https://hackmd.io/_uploads/H1bFnQv4h.png) ---
**Author:** ![ChaosLabs](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/chaoslabs/32/6850_2.png) [@ChaosLabs](https://governance.aave.com/u/ChaosLabs)\ **Post date:** [May 10, 2023, 8:32am UTC](https://governance.aave.com/t/arc-gauntlet-recommendations-for-lusd-eth-v3/13039/2 "2023-05-10T08:32:38Z")
Thanks for putting forward this proposal @seawolf. Please note there is already a proposal in place to increase the supply cap for WBTC on V3 Polygon - [[ARFC] Chaos Labs Supply and Borrow Cap Updates - 04.21.2023 ](https://governance.aave.com/t/arfc-chaos-labs-supply-and-borrow-cap-updates-04-21-2023/12845). This proposal has already passed but whas canceled due to the withdrawal of our prop power. We are working on resubmitting the AIP shortly. Additionaly, it is important to clear up some discrepancies in the post to ensure accuracy and clarity: 1. The current CAP for WBTC in the table is incorrect, showing 1,170 (the current supply) instead of 1,548 (the current cap). 2. The recommendation for WBTC refers to the **supply cap** despite the table header indicating “borrow cap.” This is probably a typo but should be corrected to avoid any ongoing confusion. ---
**Author:** ![seawolf](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/seawolf/32/3490_2.png) [@seawolf](https://governance.aave.com/u/seawolf)\ **Post date:** [May 10, 2023, 2:25pm UTC](https://governance.aave.com/t/arc-gauntlet-recommendations-for-lusd-eth-v3/13039/3 "2023-05-10T14:25:24Z")
@ChaosLabs Thanks for the clarification on the WBTC supply cap proposal [[ARFC] Chaos Labs Supply and Borrow Cap Updates - 04.21.2023](https://governance.aave.com/t/arfc-chaos-labs-supply-and-borrow-cap-updates-04-21-2023/12845). Since the proposal has passed, we are removing WBTC recommendation from this proposal. ---
**Author:** ![seawolf](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/seawolf/32/3490_2.png) [@seawolf](https://governance.aave.com/u/seawolf)\ **Post date:** [May 10, 2023, 8:51pm UTC](https://governance.aave.com/t/arc-gauntlet-recommendations-for-lusd-eth-v3/13039/4 "2023-05-10T20:51:01Z")
Given the fast-track process for cap changes, we will not publish a Snapshot vote, but rather move directly to AIP on Monday, 5/15. ---
**Author:** ![seawolf](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/seawolf/32/3490_2.png) [@seawolf](https://governance.aave.com/u/seawolf)\ **Post date:** [May 16, 2023, 2:19pm UTC](https://governance.aave.com/t/arc-gauntlet-recommendations-for-lusd-eth-v3/13039/5 "2023-05-16T14:19:13Z")
As an update, the AIP has been [published](https://app.aave.com/governance/proposal/?proposalId=226). ---
**Author:** ![Gauntlet](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/gauntlet/32/4064_2.png) [@Gauntlet](https://governance.aave.com/u/Gauntlet)\ **Post date:** [May 22, 2023, 7:40pm UTC](https://governance.aave.com/t/arc-gauntlet-recommendations-for-lusd-eth-v3/13039/6 "2023-05-22T19:40:42Z")
The proposal has been [implemented](https://app.aave.com/governance/proposal/226/).