# \[ARFC\] Chaos Labs Risk Stewards - Increase Supply Caps on Aave V3 - 09/24/24

**URL:** https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-on-aave-v3-09-24-24/19167
**Category:** Governance
**Created:** [September 24, 2024, 8:28am UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-on-aave-v3-09-24-24/19167 "2024-09-24T08:28:19Z")
**Posts on this page:** 3
**Page:** 1

<div class="post-metadata">

### 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: [September 24, 2024, 8:28am UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-on-aave-v3-09-24-24/19167/1 "2024-09-24T08:28:19Z")

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# Summary

A proposal to:

- Increase cbBTC’s supply cap on Ethereum.
- Increase cbBTC’s supply cap on Base.

# Motivation

## cbBTC (Ethereum)

cbBTC has reached 100% supply cap utilization following rapid deposits after listing.

 ![image (61)](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/4/4674333bca6c73fe5fdaa87954c147c4847f1447.png)

### Liquidity

On-chain liquidity has improved significantly since our previous recommendation. For example, a 450 cbBTC to WETH swap can be completed at 10% slippage. As such, we recommend an increase in the supply cap.

### Recommendation

Given on-chain liquidity, we recommend increasing the supply cap; there is no need to increase the borrow cap at this time.

## cbBTC (Base)

cbBTC has nearly reached its supply cap on Base, while its borrow cap is lightly utilized.

 ![image (62)](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/2/2d19dc3eccab11d3b4c49a7fe10e7211e96e9779.png)

### Liquidity

As on Ethereum, cbBTC’s DEX liquidity has improved rapidly since its launch. Currently, a 350 cbBTC to WETH swap is possible at just 10% slippage. Given this, we recommend a supply cap increase.

### Recommendation

Given on-chain liquidity, we recommend increasing the supply cap.

# Specification

| Chain | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
| --- | --- | --- | --- | --- | --- |
| Ethereum | cbBTC | 450 | 900 | 45 | - |
| Base | cbBTC | 200 | 400 | 20 | - |

# Next Steps

We will move forward and 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)

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<div class="post-metadata">

### 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: [September 24, 2024, 8:34am UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-on-aave-v3-09-24-24/19167/2 "2024-09-24T08:34:53Z")

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The transactions have been executed successfully:

- [Base](https://basescan.org/tx/0xf587e674dbfee6b6c024877b753be2fc7dee3aaf3b85211b2525c436dcc5609f)
- [Ethereum](https://etherscan.io/tx/0x5abbaac275e60ebe164ca126df4a05c067f03039532aa3148e855c86611baa9b)

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<div class="post-metadata">

### Author: ![system](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/e/e11637c36f45ffa158f2146f5c19438d46e0824d.svg) [@system](https://governance.aave.com/u/system)
#### Post date: [October 24, 2024, 8:35am UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-on-aave-v3-09-24-24/19167/3 "2024-10-24T08:35:22Z")

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