# \[ARFC\] Chaos Labs Risk Stewards - Increase Supply and Borrow Cap on V3 Gnosis - 03.12.2024

**URL:** <https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-and-borrow-cap-on-v3-gnosis-03-12-2024/16931>\
**Category:** Governance\
**Created:** [March 12, 2024, 5:42pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-and-borrow-cap-on-v3-gnosis-03-12-2024/16931 "2024-03-12T17:42:37Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![ChaosLabs](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/chaoslabs/32/6850_2.png) [@ChaosLabs](https://governance.aave.com/u/ChaosLabs)\
**Post date:** [March 12, 2024, 5:42pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-and-borrow-cap-on-v3-gnosis-03-12-2024/16931/1 "2024-03-12T17:42:37Z")

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# Summary

A proposal to increase:

- GNO - Borrow Cap
- WXDAI - Supply and Borrow Cap
- USDC - Supply and Borrow Cap
- sDAI - Supply Cap

# Motivation

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

**USDC**

The supply and borrow caps for USDC on Gnosis V3 are currently at 84% and 57% utilization, respectively.

 ![Untitled - 2024-03-12T133952.950](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/b/b567cce62244ea39c69f9b5f69637a71e6013ae9.png)

Considering the liquidity on Gnosis we recommend doubling the supply and borrow cap and setting them at 6M and 5.4M, respectively.

**WXDAI**

The supply and borrow caps for WXDAI on Gnosis V3 are currently at 90% and 72% utilization, respectively.

 ![Untitled - 2024-03-12T133955.107](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/5/5f38fd33ae03ca027fa119f721d1fe23500ed591.png)

Considering the liquidity on Gnosis we recommend doubling the supply and borrow cap and setting them at 4.6M and 4.6M, respectively.

**sDAI**

The supply cap for sDAI on Gnosis V3 is currently at 49% utilization

 ![Untitled - 2024-03-12T134001.560](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/b/bf19121d82fae3e2133380f930a0de47d1f9ef97.png)

Considering the liquidity on Gnosis and preparations for potential increased demand due to DSR increase, we recommend increasing the supply cap to 10M.

**GNO**

The borrow cap for GNO on Gnosis V3 is currently at 89% utilization.

 ![Untitled - 2024-03-12T134002.916](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/8/8d35183300922a0f55e27777434d5b426a525278.png)

Considering the liquidity and usage on Gnosis we recommend doubling the cap to 2.2k

 ![Untitled - 2024-03-12T134004.297](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/5/568a5e6a8e20b42c695875077d3f3a45fff57b5f.png)

# Specification

| Chain | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
| --- | --- | --- | --- | --- | --- |
| Gnosis | GNO | 40,000 | No Change | 1,100 | 2,200 |
| Gnosis | WXDAI | 2,300,000 | 4,600,000 | 2,300,000 | 4,600,000 |
| Gnosis | USDC | 3,000,000 | 6,000,000 | 2,800,000 | 5,600,000 |
| Gnosis | sDAI | 6,000,000 | 10,000,000 | N/A | N/A |

# 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](https://creativecommons.org/publicdomain)

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<div class="post-metadata">

**Author:** ![ChaosLabs](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/chaoslabs/32/6850_2.png) [@ChaosLabs](https://governance.aave.com/u/ChaosLabs)\
**Post date:** [March 13, 2024, 10:58am UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-and-borrow-cap-on-v3-gnosis-03-12-2024/16931/2 "2024-03-13T10:58:38Z")

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We have created and executed the tx for this proposal

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<div class="post-metadata">

**Author:** ![system](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/e/e11637c36f45ffa158f2146f5c19438d46e0824d.svg) [@system](https://governance.aave.com/u/system)\
**Post date:** [April 12, 2024, 10:59am UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-and-borrow-cap-on-v3-gnosis-03-12-2024/16931/3 "2024-04-12T10:59:15Z")

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