# \[ARFC\] - Chaos Labs Risk Stewards - Increase Supply and Borrow Caps on V3 Scroll - 02.19.2024
**URL:** https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-and-borrow-caps-on-v3-scroll-02-19-2024/16680
**Category:** Governance
**Created:** [February 19, 2024, 10:40pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-and-borrow-caps-on-v3-scroll-02-19-2024/16680 "2024-02-19T22:40:47Z")
**Posts on this page:** 4
**Page:** 1
### Author:  [@ChaosLabs](https://governance.aave.com/u/ChaosLabs)
#### Post date: [February 19, 2024, 10:40pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-and-borrow-caps-on-v3-scroll-02-19-2024/16680/1 "2024-02-19T22:40:47Z")
# Summary
A proposal to increase the following caps on V3 Scroll:
- WETH - Supply and Borrow cap
- wstETH - Supply Cap
# Motivation
The supply cap for wstETH on V3 Scroll is currently at 100% utilization, and the supply and borrow caps of WETH are at ~97% and ~86%, respectively.
As the Scroll deployment only recently launched and has limited historical data and usage, we do not utilize our stress testing methodology for this set of recommendations. Instead, we utilized our previous interim supply cap methodology, which can be found [here](https://governance.aave.com/t/chaos-labs-updated-supply-and-borrow-cap-methodology/11602).
Given the current usage across the deployment and liquidity on Scroll, we support doubling the wstETH supply cap and the WETH Borrow cap. For WETH, we recommend setting the supply cap at 750, following our approach of setting the supply cap of assets at no more than 50% of their onchain circulating supply and considering the current total circulating supply of WETH on Scroll is 1,500.
## User Analysis
### **USDC**
Two users are currently supplying nearly 100% of the total supply. Both are not borrowing against their collateral.
1. [0x1e4c8489F9d876293C36b730107E89e0F2a0CB04](https://debank.com/profile/0x1e4c8489f9d876293c36b730107e89e0f2a0cb04) - supplying 500K USDC, with no borrows against it.
2. [0x65a9d341bdf21d5af7f91d8b2c710ed5aedf4ca6](https://debank.com/profile/0x65a9d341bdf21d5af7f91d8b2c710ed5aedf4ca6) - supplying 456K USDC, with no borrows against it.
### wstETH
Two users are currently supplying over 88% of the total wstETH.
1. [0xecc0e46f64458ae70dca30e298d20e3c993d9541](https://debank.com/profile/0xecc0e46f64458ae70dca30e298d20e3c993d9541) - supplying ~130 wstETH to borrow ~140 WETH.
2. [0x4ef83c71eeb0db578bc74b30aa570873bfcfeae1](https://debank.com/profile/0x4ef83c71eeb0db578bc74b30aa570873bfcfeae1) - supplying 100 wstETH, with no borrows against it.
### WETH
A single user is currently borrowing over 78% of the total borrowed WETH.
1. [0xecc0e46f64458ae70dca30e298d20e3c993d9541](https://debank.com/profile/0xecc0e46f64458ae70dca30e298d20e3c993d9541) - borrowing ~140 WETH against his ~130 wstETH collateral
# Specification
| Chain | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
| --- | --- | --- | --- | --- | --- |
| Scroll | WETH | 480 | 750 | 200 | 400 |
| Scroll | wstETH | 260 | 520 | 45 | No Change |
# 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.
Please note that given the 5-day timelock between risk steward transactions, the earliest this proposal can be executed is Wednesday, February 21st.
# 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:  [@ChaosLabs](https://governance.aave.com/u/ChaosLabs)
#### Post date: [February 21, 2024, 10:50pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-and-borrow-caps-on-v3-scroll-02-19-2024/16680/2 "2024-02-21T22:50:37Z")
We’ve prepared the payload to be executed via the Risk Steward process.
> **[Scroll Safe](https://safe.scroll.xyz/transactions/queue?safe=scr:0x611439a74546888c3535B4dd119A5Cbb9f5332EA)**
>
> Scroll Safe is the most trusted platform to manage digital assets on Scroll.
---
### Author:  [@Gauntlet](https://governance.aave.com/u/Gauntlet)
#### Post date: [February 22, 2024, 8:37pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-and-borrow-caps-on-v3-scroll-02-19-2024/16680/3 "2024-02-22T20:37:19Z")
Gauntlet supports these cap increases on Scroll and signed the Risk Steward.
---
### Author:  [@system](https://governance.aave.com/u/system)
#### Post date: [March 23, 2024, 8:37pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-and-borrow-caps-on-v3-scroll-02-19-2024/16680/4 "2024-03-23T20:37:27Z")
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