Summary
A proposal to increase the borrow cap for LUSD and rETH on Aave V3 Ethereum.
Motivation
rETH
The borrow cap for rETH on Ethereum is currently at a ~98% utilization.
We recommend increasing the cap from 4.8K to 9.6K
LUSD
The borrow cap for LUSD on Ethereum is currently at a ~77% utilization.
We recommend increasing the cap from 4M to 8M
Specification
| Chain | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Ethereum | rETH | 60,000 | No Change | 4,800 | 9,600 |
| Ethereum | LUSD | 12,000,000 | No Change | 4,000,000 | 8,000,000 |
Next Steps
Once we receive feedback from @Gauntlet on the above recommendations, we will be able to move forward to implement these updates via the Risk Steward process.