Summary
A proposal to increase:
- USDC — Supply and Borrow Cap
Motivation
The recommendations below were made utilizing Chaos’ supply and borrow cap methodologies after analyzing user positions for each asset.
USDC
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.
Specification
| 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.
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this ARFC.
Copyright
Copyright and related rights waived via CC0