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


A proposal to increase the supply cap for WETH and METIS on Aave V3 Metis.


The supply cap for WETH and METIS on Metis is currently at 100% utilization.

As the Metis deployment is relatively new with limited historical data and usage, we do not utilize our stress testing methodology for this set of recommendations. Instead, we utilized our previous supply cap methodology, which can be found here.

Despite this methodology being more conservative, it still permits the increase of the supply cap in light of the current DEX liquidity for WETH, which has seen growth since Aave’s initial launch on Metis, including the added liquidity in the Maia Uni V3 pools.
We recommend increasing the cap by 2X to 100 WETH.

We would like to point out that currently, there is only one account supplying WETH on Metis, with its current health factor at 1.15. We will continue monitoring usage patterns following the coming cap increase.

For Metis, as it is a non-collateral asset, we recommend increasing the supply cap by 2X to 15,000.


Chain Asset Current Supply Cap Recommended Supply Cap Current Borrow Cap Recommended Borrow Cap
Metis WETH 50 100 30 60
Metis METIS 7,500 15,000 4,000 No Change

Next Steps

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


We are aligned on the WETH and METIS supply cap increases for Aave v3 Metis.

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

tx hash:

We signed the transaction but it is not available to execute yet, as it’s queued for nonce 1 but the safe is on nonce 0 @ChaosLabs.

As we communicated to the @Gauntlet team privately over 24 hours ago, we’ve created an additional tx with nonce 0 to enable the execution of this proposal.

Once the Gauntlet team signs this transaction, the cap update will be carried out.

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The supply cap increase for WETH and METIS, and the borrow cap increase for WETH has been executed via risk steward.

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