[ARFC] Chaos Labs Risk Stewards - Increase Supply and Borrow Cap for USDC on V3 Optimism - 04.01.2024


A proposal to increase:

  • USDC — Supply and Borrow Cap


The recommendations below were made utilizing Chaos’ supply and borrow cap methodologies after analyzing user positions for each asset.


The supply cap for USDC on Optimism V3 is currently at 87% utilization, while the borrow cap utilization stands at 91%.

The recent increase in supply and borrow can be attributed to the OP rewards distributed to native USDC suppliers as part of the efforts to migrate users from USDC.e to native USDC

Considering the liquidity on Optimism and the composition of supply and borrows, we recommend doubling the supply and borrow caps to 50M and 40M, respectively.


Chain Asset Current Supply Cap Recommended Supply Cap Current Borrow Cap Recommended Borrow Cap
Optimism USDC 25,000,000 50,000,000 20,000,000 40,000,000

Next Steps

We will move forward and 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

The transaction for this proposal has now been executed.

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