Hi @2theMoon. The recommendations were derived given current liquidity conditions on Metis and the current usage on Aave. Should onchain and DEX liquidity improve, we are prepared to make further recommendations and increase the caps should the conditions and our methodologies permit.
Regarding alternative collateral assets besides stablecoins, we have previously supported enabling METIS as collateral in isolation mode with a conservative launch. This proposal has passed the ARFC stage and should be ready for an AIP vote.