Arbitrum v3 Supply and Borrow Cap Recommendations and Analysis
USDC
As seen in our dashboard, the supply and borrow caps for USDC on Arbitrum v3 have reached 100% utilization, up from 83% and 81% respectively in the last two days. Given sufficient USDC circulating supply, we agree with doubling the USDC supply cap from 64M to 128M and doubling the USDC borrow cap from 60M to 120M.
ARB
Also seen in our dashboard, ARB supply cap utilization has recently reached 100%, with borrow cap utilization remaining around 10%. Given sufficient ARB liquidity, we agree with increasing the ARB supply cap from 20M to 40M, while maintaining the current borrow cap of 16.5M.
Specification
We agree with the recommendations as stated in the analysis, noting that the correct specification is as follows:
| Chain | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Arbitrum | USDC | 64,000,000 | 128,000,000 | 60,000,000 | 120,000,000 |
| Arbitrum | ARB | 20,000,000 | 40,000,000 | 16,500,000 | No Change |