[ARFC] - Chaos Labs Risk Stewards - Increase Borrow Cap for WETH on V3 Arbitrum - 02.16.2024


A proposal to increase the borrow caps for WETH on V3 Arbitrum.


The borrow cap for WETH V3 Arbitrum is currently at 78% utilization.

Over 86% of WETH borrowed is against wstETH collateral, as can be seen in the top borrower and distribution carts below.

Utilizing our supply and borrow cap methodology and given the current usage, we recommend increasing the borrow cap to 60K WETH.


Chain Asset Current Supply Cap Recommended Supply Cap Current Borrow Cap Recommended Borrow Cap
Arbitrum WETH 70,000 No Change 40,000 60,000

Next Steps

Once we receive feedback from @Gauntlet on the above recommendations, we will move forward to implement these updates via the Risk Steward process.


Chaos Labs has not been compensated by any third party for publishing this ARFC.


Copyright and related rights waived via CC0

Gauntlet supports increasing the WETH borrow cap on Arbitrum from 40k to 60k.

We’ve prepared the payload to be executed via the Risk Steward process for this proposal.

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