Summary
A proposal to:
- Increase GHO’s borrow cap on the Arbitrum V3 deployment.
Motivation
GHO (Arbitrum)
GHO has reached 50% supply cap utilization and its borrow cap is at 37% utilization. While these figures are relatively low, we anticipate an influx of demand given newly increase ARB borrow incentives.
Supply Distribution
Supply is relatively well distributed, with no single user dominating. Importantly, this asset cannot be used as collateral.
Borrow Distribution
Borrows are against a variety of different collateral, with the two largest presenting limited risk of liquidation.
USDC is the most popular collateral asset against GHO.
Recommendation
Given anticipated user behavior in light of incentives, we recommend increasing the borrow cap.
Specification
| Chain | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Arbitrum | GHO | 16,000,000 | - | 9,000,000 | 14,000,000 |
Next Steps
We will move forward and implement these updates via the Risk Steward process.
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this ARFC.
Copyright
Copyright and related rights waived via CC0