[ARFC] - Chaos Labs Risk Stewards - Increase Supply and Borrow Caps on V3 Scroll - 03.10.2024


A proposal to increase the following caps on V3 Scroll:

  • USDC - Supply and Borrow cap
  • WETH - Supply Cap


The supply cap for WETH and borrow cap for USDC on V3 Scroll are both currently at 100% utilization. The USDC supply cap is currently at 75% utilization.
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.

Given the current usage across the deployment and liquidity on Scroll, we support doubling the WETH supply cap and the USDC Supply and Borrow cap.

User Analysis

WETH Supply Cap and USDC Borrow Cap

Screenshot 2024-03-10 at 16.11.11

The majority of USDC debt is collateralized by WETH and wstETH. Concurrently, about 23% of all supplied WETH is being utilized as collateral to borrow USDC.

Screenshot 2024-03-10 at 16.14.22

USDC Supply Cap

Only 1.8% of supplied USDC is being utilized as collateral to borrow WETH or wstETH.

Screenshot 2024-03-10 at 16.24.36

Considering the enhanced on-chain liquidity and the underutilization of USDC as collateral, we propose doubling all specified supply and borrow caps.


Screen Shot 2024-03-10 at 15.57.02

Next Steps

We will move forward and 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

We have created and executed the tx for the proposal above.