A proposal to increase:
- Supply and Borrow cap for RPL on Aave V3 Ethereum.
- Supply and Borrow cap for wstETH on Aave V3 Ethereum.
- Borrow Cap for wstETH on Aave V3 Arbitum.
- Supply cap for LUSD on Aave V3 Arbitum.
- Supply cap for LINK on Aave V3 Arbitrum
- Borrow Cap for cbETH on Aave V3 Base.
The recommendations below were made utilizing Chaos’ supply and borrow cap methodologies and after analyzing user positions for each asset.
The supply and borrow cap for RPL on V3 Ethereum are currently at 100% and 74% utilization, respectively.
As RPL is listed as a non-collateral asset, we recommend doubling the current supply cap to 420K RPL. Given the current borrow cap utilization, we recommend increasing the cap to 160K.
The supply and borrow cap for wstETH on Ethereum are currently at 91% and 96% utilization, respectively.
We recommend increasing the supply cap to 750K and doubling the borrow cap to 24K.
The supply cap for LUSD on Ethereum is currently at 96% utilization.
The total circulating supply of LUSD on Arbitrum is currently 2.3M. As LUSD is not utilized as collateral, we currently recommend capping the supply at 60% of the total on chain circulating supply. As We recommend doubling the cap from 900K to 1.4M
The borrow cap for wstETH on Arbitrum is currently at 91% utilization.
We recommend doubling the cap from 800 to 1,600 wstETH
The borrow cap for cbETH on Base is currently at 91% utilization.
We recommend doubling the cap from 100 to 200 cbETH
|Chain||Asset||Current Supply Cap||Recommended Supply Cap||Current Borrow Cap||Recommended Borrow Cap|
Once we receive feedback from @Gauntlet on the above recommendations, we will be able to move forward to implement these updates via the Risk Steward process.