# \[ARFC\] - Chaos Labs Risk Stewards - Increase Supply Caps on V3 Gnosis - 12.15.2023 **URL:** \ **Category:** Governance\ **Created:** [December 16, 2023, 12:06am UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-on-v3-gnosis-12-15-2023/15861 "2023-12-16T00:06:55Z")\ **Posts on this page:** 5\ **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:** [December 16, 2023, 12:06am UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-on-v3-gnosis-12-15-2023/15861/1 "2023-12-16T00:06:55Z")
# Summary A proposal to increase: ### Gnosis - sDAI - Supply Cap - GNO - Supply Cap # Motivation The recommendations below were made utilizing Chaos’ supply and borrow cap methodologies and after analyzing user positions for each asset. **sDAI** The supply cap for sDAI on Gnosis V3 is currently at 85% utilization. ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/c/caf796687188c8ba3675fe7babf51e987d652e57.png) 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. ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/9/9793e964850b35208f388e747ae314a119954b1c.png) ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/8/8344ff46fc3151332008c02c24c71a42e5877077.png) **GNO** The supply cap for GNO on Gnosis V3 is currently at 89% utilization. ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/9/94c69dcd95b8e70db953d3cb863e0a2fdcc6ed05.png) The recent increase in supply cap utilization is due to this [account](https://0xa99640210d21a7318c3b85c19ce5b3d49251e04d) 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](https://app.aave.com/governance/proposal/?proposalId=411), 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. # Specification | 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](https://governance.aave.com/u/gauntlet) on the above recommendations, we will move forward to implement these updates via the Risk Steward process. ---
**Author:** ![Gauntlet](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/gauntlet/32/4064_2.png) [@Gauntlet](https://governance.aave.com/u/Gauntlet)\ **Post date:** [December 16, 2023, 10:17pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-on-v3-gnosis-12-15-2023/15861/2 "2023-12-16T22:17:32Z")
Per our previous [analysis](https://governance.aave.com/t/arfc-increase-caps-for-aave-v3-gnosischain-market/15464/4), we support these cap increases on Gnosis. ---
**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:** [December 17, 2023, 3:11pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-on-v3-gnosis-12-15-2023/15861/3 "2023-12-17T15:11:21Z")
We’ve prepared the payload with the updated recommendation above to be executed via the Risk Steward process for this proposal. > **[Safe{Wallet}](https://app.safe.global/transactions/tx?id=multisig_0xF221B08dD10e0C68D74F035764931Baa3b030481_0x0280151f2b36bdc1201875956818413bd5c74eab8a0b3e0739871003a12c9999&safe=gno:0xF221B08dD10e0C68D74F035764931Baa3b030481)** > > Safe (prev. Gnosis Safe) is the most trusted platform to manage digital assets on Ethereum and multiple EVMs. Over $40B secured. ---
**Author:** ![Gauntlet](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/gauntlet/32/4064_2.png) [@Gauntlet](https://governance.aave.com/u/Gauntlet)\ **Post date:** [December 18, 2023, 6:34pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-on-v3-gnosis-12-15-2023/15861/4 "2023-12-18T18:34:50Z")
This has been executed via risk steward. ---
**Author:** ![system](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/e/e11637c36f45ffa158f2146f5c19438d46e0824d.svg) [@system](https://governance.aave.com/u/system)\ **Post date:** [January 17, 2024, 6:35pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-on-v3-gnosis-12-15-2023/15861/5 "2024-01-17T18:35:25Z")
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