# \[ARFC\] - Chaos Labs Risk Stewards - Increase Supply and Borrow Caps on V3 Gnosis - 02.13.2024 **URL:** \ **Category:** Governance\ **Created:** [February 13, 2024, 9:14pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-and-borrow-caps-on-v3-gnosis-02-13-2024/16615 "2024-02-13T21:14:38Z")\ **Posts on this page:** 5\ **Page:** 1
**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:** [February 13, 2024, 9:14pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-and-borrow-caps-on-v3-gnosis-02-13-2024/16615/1 "2024-02-13T21:14:38Z")
# Summary A proposal to increase: ### Gnosis - EURe - Supply and Borrow Cap - USDC - Supply and Borrow Cap - wstETH - Supply Cap # Motivation The recommendations below were made utilizing Chaos’ supply and borrow cap methodologies and after analyzing user positions for each asset. **EURe** The supply cap for EURe on Gnosis V3 is currently at 89% utilization. ![Untitled - 2024-02-13T161227.127](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/b/b8c2840564c3e348dc95fba78c333faca6ae88cf.png) 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. **USDC** The supply cap for USDC on Gnosis V3 is currently at 84% utilization. ![Untitled - 2024-02-13T161303.848](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/a/a363d28779aa6230246eac561832867aa092cc4a.png) Considering the liquidity on Gnosis we recommend doubling the supply and borrow cap and setting them at 3M and 2.8M, respectively. **wstETH** The supply cap for wstETH on Gnosis V3 is currently at 82% utilization. ![Untitled - 2024-02-13T161243.166](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/5/5df303f9d9cd79c909456eb41d773bdf2aa67fed.png) wstETH is currently primarily used to borrow WETH, as can be seen in the borrow distribution chart on the [Chaos Risk Platform](https://community.chaoslabs.xyz/aave/risk/markets/Gnosis/listed-assets/wstETH): ![Untitled - 2024-02-13T161246.994](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/7/7c3fc671621c25d03d2070cdd6573e88be111a82.png) 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. # Specification | 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](https://governance.aave.com/u/gauntlet) on the above recommendations, we will move forward to 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) ---
**Author:** ![seawolf](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/seawolf/32/3490_2.png) [@seawolf](https://governance.aave.com/u/seawolf)\ **Post date:** [February 15, 2024, 2:58pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-and-borrow-caps-on-v3-gnosis-02-13-2024/16615/2 "2024-02-15T14:58:17Z")
Based on Gauntlet’s supply and borrow cap [methodology](https://governance.aave.com/t/gauntlet-methodologies-borrow-and-supply-cap/11487), Gauntlet supports increasing the caps for EURe, wstETH, and USDC to recommended amounts. ---
**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:** [February 16, 2024, 3:21am UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-and-borrow-caps-on-v3-gnosis-02-13-2024/16615/3 "2024-02-16T03:21:04Z")
We’ve prepared the payload to be executed via the Risk Steward process for this proposal. > **[Safe{Wallet}](https://app.safe.global/transactions/tx?id=multisig_0xF221B08dD10e0C68D74F035764931Baa3b030481_0x31f207eb972773eae9b172ad32363e9e0983742fc64066d04bf164963d2edb0a&safe=gno:0xF221B08dD10e0C68D74F035764931Baa3b030481)** > > Safe (prev. Gnosis Safe) is the most trusted platform to manage digital assets on Ethereum and multiple EVMs. Over $40B secured. ---
**Author:** ![Gauntlet](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/gauntlet/32/4064_2.png) [@Gauntlet](https://governance.aave.com/u/Gauntlet)\ **Post date:** [February 16, 2024, 6:49pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-and-borrow-caps-on-v3-gnosis-02-13-2024/16615/4 "2024-02-16T18:49:33Z")
This has been executed via risk steward. ---
**Author:** ![system](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/e/e11637c36f45ffa158f2146f5c19438d46e0824d.svg) [@system](https://governance.aave.com/u/system)\ **Post date:** [March 17, 2024, 6:50pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-and-borrow-caps-on-v3-gnosis-02-13-2024/16615/5 "2024-03-17T18:50:32Z")
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