[ARFC] Chaos Labs Risk Stewards - Increase Supply and Borrow Caps for weETH on V3 Arbitrum - 04.21.2024


A proposal to:

  • Increase the weETH supply and borrow cap on Aave V3’s Arbitrum deployment.



weETH has reached its supply cap and 89% of borrow cap on Arbitrum.

Supply Distribution

Most of the top suppliers are borrowing WETH against weETH collateral, putting these positions at limited risk of liquidations, given the calculated oracle for weETH.

Overall, WETH represents 100% of the value borrowed against weETH.


Given the analysis above and onchain liquidity, we recommend doubling the supply and borrow cap.


Chain Asset Current Supply Cap Recommended Supply Cap Current Borrow Cap Recommended Borrow Cap
Arbitrum weETH 1,000 2,000 100 200

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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