# \[ARC\] Increase Supply Cap of sUSD on v3 Optimism (Fast-track)

**URL:** <https://governance.aave.com/t/arc-increase-supply-cap-of-susd-on-v3-optimism-fast-track/9196>\
**Category:** Governance\
**Created:** [August 4, 2022, 9:15pm UTC](https://governance.aave.com/t/arc-increase-supply-cap-of-susd-on-v3-optimism-fast-track/9196 "2022-08-04T21:15:20Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![MattLosquadro](https://avatars.discourse-cdn.com/v4/letter/m/e56c9b/32.png) [@MattLosquadro](https://governance.aave.com/u/MattLosquadro)\
**Post date:** [August 4, 2022, 9:15pm UTC](https://governance.aave.com/t/arc-increase-supply-cap-of-susd-on-v3-optimism-fast-track/9196/1 "2022-08-04T21:15:20Z")

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**Current parameters:**

Supply cap: `10M sUSD` → _ **20m sUSD** _ (proposed increase of supply cap)

DEX Liquidity: ~$50m+

_Normal mode_:

LTV: 60%

Liquidation threshold: 75%

Liquidation penalty: 5%

_E-mode_:

Assets: Stablecoins

Max LTV: 97%

**Proposal** : Increase of supply cap by 100% to 20m sUSD

The current sUSD supply cap on v3 is 10m sUSD and has been reached shortly after the launch of AAVE and Optimisms liquidity mining program on AAVE V3.

The proposal’s goal is to suggest an increase of 100% to 20m sUSD supply cap via the fast-track process as outlined [here](https://governance.aave.com/t/arc-v3-supply-borrow-cap-management-fast-track-process/8045)

Reasons for increase:

1. _sUSD Dex Liquidity_: Despite market conditions, sUSD DEX liquidity vastly increased across Optimism on Curve, Uniswap, Velodrome, and others. This can facilitate healthy liquidations if ever necessary.

2. _sUSD’s Healthy Peg_: Throughout the entire time sUSD has been an asset on AAVE, it has held peg and has not decreased within 1% of the expected peg of $1. This is due to increased sUSD Dex liquidity, and constant arbitrage of the peg by market makers.

3. _Optimism Liquidity Mining_: Due to the ongoing OP liquidity mining program on AAVE V3, the sUSD supply cap has been hit very quickly. To ensure that more users are able to supply/borrow on AAVE, it is important to increase this supply cap to ensure that there is ample amounts of sUSD available on AAVE.

We look forward to the discussion on **increasing the Supply Cap of sUSD** on v3 by 100% to 20m sUSD.

Note: We’ve used the template set by sAVAX when they’ve increased their supply cap via Fast-Track as well.

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**Author:** ![MarcZeller](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/marczeller/32/7124_2.png) [@MarcZeller](https://governance.aave.com/u/MarcZeller)\
**Post date:** [August 5, 2022, 8:48am UTC](https://governance.aave.com/t/arc-increase-supply-cap-of-susd-on-v3-optimism-fast-track/9196/2 "2022-08-05T08:48:32Z")

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I’m in favour of this proposal,

there are natural synergies between SNX stakers and sUSD minters on OP and Aave LP.

This proposal seems fit for the [fast-track process](https://governance.aave.com/t/arc-v3-supply-borrow-cap-management-fast-track-process/8045) to change caps. if community agrees a vote by snapshot can be published in 24h.