[ARFC] - Chaos Labs Risk Stewards - Increase Supply and Borrow Caps on V3 Gnosis - 02.13.2024


A proposal to increase:


  • EURe - Supply and Borrow Cap
  • USDC - Supply and Borrow Cap
  • wstETH - Supply Cap


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


The supply cap for EURe on Gnosis V3 is currently at 89% utilization.

Given current liquidity and as EURe is listed as a non-collateral asset, we recommend increasing the supply cap by 2X to 1,5M and the borrow cap to 1.4M.


The supply cap for USDC on Gnosis V3 is currently at 84% utilization.

Considering the liquidity on Gnosis we recommend doubling the supply and borrow cap and setting them at 3M and 2.8M, respectively.


The supply cap for wstETH on Gnosis V3 is currently at 82% utilization.

wstETH is currently primarily used to borrow WETH, as can be seen in the borrow distribution chart on the Chaos Risk Platform:

Utilizing our methodology for LSTs and considering liquidity conditions and the borrow distribution on Aave, we recommend increasing the wstETH supply cap to 7.5K.


Chain Asset Current Supply Cap Recommended Supply Cap Current Borrow Cap Recommended Borrow Cap
Gnosis EURe 750,000 1,500,000 750,000 1,400,000
Gnosis USDC 1,500,000 3,000,000 1,500,000 2,800,000
Gnosis wstETH 5,000 7,500 400 N/A

Next Steps

Once we receive feedback from @Gauntlet on the above recommendations, we will move forward to 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

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Based on Gauntlet’s supply and borrow cap methodology, Gauntlet supports increasing the caps for EURe, wstETH, and USDC to recommended amounts.

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We’ve prepared the payload to be executed via the Risk Steward process for this proposal.

This has been executed via risk steward.

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