[ARFC] - Chaos Labs Risk Stewards - Increase Supply Caps on V3 Gnosis - 12.15.2023


A proposal to increase:


  • sDAI - Supply Cap
  • GNO - Supply Cap


The recommendations below were made utilizing Chaos’ supply and borrow cap methodologies and after analyzing user positions for each asset.


The supply cap for sDAI on Gnosis V3 is currently at 85% utilization.


Considering the liquidity on Gnosis and the usage of sDAI on Aave, primarily to borrow xDAI and USDC, we recommend doubling the supply cap and setting it at 6M sDAI.



The supply cap for GNO on Gnosis V3 is currently at 89% utilization.


The recent increase in supply cap utilization is due to this account which supplied 10K GNO and accounts for ~37% of the total GNO supply.

As the proposal for allowing GNO borrows has entered the AIP stage, we suggest a slight increase of the caps. This approach will allow us to monitor the impact of the proposal on GNO’s activity within the platform, before proposing more substantial cap increases, while not hindering growth.

We recommend increasing the GNO supply cap to 40K.


Chain Asset Current Supply Cap Recommended Supply Cap Current Borrow Cap Recommended Borrow Cap
Gnosis sDAI 3,000,000 6,000,000 N/A N/A
Gnosis GNO 30,000 40,000 N/A N/A

Next Steps

Once we receive feedback from @Gauntlet on the above recommendations, we will move forward to implement these updates via the Risk Steward process.

Per our previous analysis, we support these cap increases on Gnosis.

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We’ve prepared the payload with the updated recommendation above to be executed via the Risk Steward process for this proposal.

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This has been executed via risk steward.

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