# \[ARFC\] Chaos Labs Risk Stewards - Increase Supply Caps on Scroll Aave V3 - 08.07.2024 **URL:** \ **Category:** Governance\ **Created:** [August 7, 2024, 3:20pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-on-scroll-aave-v3-08-07-2024/18566 "2024-08-07T15:20:43Z")\ **Posts on this page:** 4\ **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:** [August 7, 2024, 3:20pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-on-scroll-aave-v3-08-07-2024/18566/1 "2024-08-07T15:20:43Z")
# Summary A proposal to: - Increase wstETH’s supply cap on Aave V3’s Scroll deployment - Increase weETH’s supply cap on Aave V3’s Scroll deployment ## wstETH (Scroll) wstETH has reached its supply cap while its borrow cap is 69% utilized. ![Untitled (49)](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/b/b34b332b4f41fe21d563af699c990601481eac94.png) ![Untitled (55)](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/8/85e2b6855b1340171cb9e1a9cdbc4d396dc8efae.png) ### Supply Distribution The top suppliers are all looping wstETH with WETH, reducing the likelihood of large scale liquidation events given the correlation between the assets. ![Untitled (50)](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/e/e545ecd7c2a8c120283a71ba027605793d2283ef.png) Overall, less than $750K of stablecoins are borrowed against wstETH collateral. ![Untitled (51)](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/b/bcf13c82374ca37f0ce8c26bb8d11640b4187437.png) ### Recommendation Given on-chain liquidity and user distribution, we recommend increasing the supply cap, noting that we are limited by wstETH’s supply on Scroll. ## weETH (Scroll) weETH has reached its supply cap while its borrow cap is 53% utilized. ![Untitled (52)](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/0/035054ca88df69313f3774b773aa3778d53afed1.png) ### Supply Distribution This market is concentrated, with a single depositor accounting for 64.5% of the total supply. However, this user is looping weETH and wstETH collateral with WETH, making liquidations unlikely. ![Untitled (53)](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/e/edc4098099afc0f5ef671ba3196c60d08a856966.png) Only ETH-correlated assets are borrowed against weETH. ![Untitled (54)](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/f/f741c092f737eaa58de2516dca00432350325262.png) ### Recommendation Given on-chain liquidity and user behavior, we recommend doubling the supply cap. # Specification | Chain | Asset | Current Supply Cap | Rec. Supply Cap | Current Borrow Cap | Rec. Borrow Cap | | --- | --- | --- | --- | --- | --- | | Scroll | wstETH | 19,000 | 20,500 | 4,200 | - | | Scroll | weETH | 2,000 | 4,000 | 400 | - | # 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) ---
**Author:** ![shea](https://avatars.discourse-cdn.com/v4/letter/s/3ab097/32.png) [@shea](https://governance.aave.com/u/shea)\ **Post date:** [August 7, 2024, 7:47pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-on-scroll-aave-v3-08-07-2024/18566/2 "2024-08-07T19:47:27Z")
For transparency, when do you aim to execute the risk steward transaction? ---
**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:** [August 8, 2024, 10:26am UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-on-scroll-aave-v3-08-07-2024/18566/5 "2024-08-08T10:26:59Z")
The [transaction](https://scrollscan.com/tx/0x5a7f52ac7d897b2ffe5a36f6f0bc08d7dcf62f50a8d917f56855cc9fcc0a0d11) has been executed successfully. Following our next updates, we will communicate the execution time in advance. ---
**Author:** ![system](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/e/e11637c36f45ffa158f2146f5c19438d46e0824d.svg) [@system](https://governance.aave.com/u/system)\ **Post date:** [September 7, 2024, 10:27am UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-on-scroll-aave-v3-08-07-2024/18566/6 "2024-09-07T10:27:16Z")
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