Simple Summary
A proposal to reduce the Supply and Borrow Caps and Debt Ceiling for MAI on Aave V3 Polygon, Avalanche, Arbitrum and Optimism
Motivation
In light of MAI’s recent depegging and the insights provided in the Chaos Labs - MAI Depeg Update , we propose a conservative approach, including a temporary reduction in both the supply and borrow caps as well as the debt ceilings. With consideration of the current usage on Aave and existing liquidity, we recommend implementing the following updates:
- Set supply caps at the current supply in each deployment
- Set borrow cap at the current borrow in each deployment
- Set Debt Ceiling at 2*(Liquidity within LB range / MAI LT)
Note: Final recommendations will be rounded for simplicity
DEX Liquidity
Polygon
Arbitrum
Avalanche
Optimism
Recommendations
| Chain | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap | Current Debt Ceiling ($) | Recommended Debt Ceiling ($) |
|---|---|---|---|---|---|---|
| Arbitrum | 4,800,000 | 325,000 | 2,400,000 | 250,000 | 1,200,000 | 100,000 |
| Avalanche | 700,000 | 20,000 | 460,000 | 10,000 | 2,000,000 | 10,000 |
| Optimism | 7,600,000 | 650,000 | 2,500,000 | 525,000 | 1,900,000 | 130,000 |
| Polygon | 2,200,000 | 900,000 | 1,200,000 | 700,000 | 2,000,000 | 180,000 |
Note: Given the current usage on Polygon, these recommendations effectively disable further usage of MAI as collateral.
Next Steps
Following community feedback and barring any objections, we ask to submit the ARFC via the [ARFC] Direct-to-AIP Framework
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this ARFC.
Copyright
Copyright and related rights waived via CC0