A proposal to increase:
- RPL - Borrow Cap
- METIS - borrow cap
The recommendations below were made utilizing Chaos’ supply and borrow cap methodologies and after analyzing user positions for each asset.
The borrow cap for RPL on Ethereum V3 is currently at 100% utilization.
When examining borrower activity, we have observed that borrowers primarily borrow RPL tokens to engage in staking within the Rocket Pool ecosystem. It is essential to note that the liquidity levels on dexes are currently relatively limited. As a result, we recommend a 50% increase in the borrow cap, elevating it from 160,000 to 240,000 RPL tokens.
The borrow cap for METIS on Metis V3 is currently at 100% utilization.
Utilizing our borrow cap methodology, we do not observe any additional risk when increasing the borrow cap for METIS. We recommend doubling the borrow cap to 16K.
|Current Supply Cap
|Recommended Supply Cap
|Current Borrow Cap
|Recommended Borrow Cap
Once we receive feedback from @Gauntlet on the above recommendations, we will move forward to implement these updates via the Risk Steward process.