# \[ARFC\] Chaos Labs Risk Stewards - Increase Supply Caps WETH and CRV on V3 Polygon **URL:** \ **Category:** Governance\ **Created:** [July 10, 2023, 1:44pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-weth-and-crv-on-v3-polygon/13953 "2023-07-10T13:44:35Z")\ **Posts on this page:** 7\ **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:** [July 10, 2023, 1:44pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-weth-and-crv-on-v3-polygon/13953/1 "2023-07-10T13:44:35Z")
# Summary A proposal to increase the supply cap for WETH and CRV on Aave V3 Polygon. # Motivation Following the community approval of the [AIP](https://app.aave.com/governance/proposal/250/) to update IR curve parameters on V2 Polygon, aimed at encouraging users to migrate positions to V3, we propose increasing the supply caps for WETH and CRV to allow enough room for the V2 positions. For all other assets, the current caps are sufficient to accommodate the transfer of all V2 positions. | Asset | V2 Supply | V3 Available | V3 Current Supply | V3 Supply Cap | Recommended Supply Cap | | --- | --- | --- | --- | --- | --- | | wETH | 38,090 | 22,160 | 27,840 | 50,000 | 75,000 | | CRV | 140,860 | 0 | 1,130,000 | 1,130,000 | 1,400,000 | The recommendations provided in this proposal were derived using Chaos Labs’ [Supply and Borrow Cap Methodology](https://governance.aave.com/t/chaos-labs-supply-cap-methodology/12842). Below are the data considerations and recommendations for all assets: ### WETH ![Untitled - 2023-07-10T164117.242](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/2/27dec7684c7e2f2dc63f6a4e578457100c75998f.png) ### CRV Given the current market conditions and LT configuration on V3 Polygon, we propose a modest increase in the supply cap to facilitate the migration of positions from V2. In the near future, we aim to [further decrease](https://app.aave.com/governance/proposal/264/) the LTs for CRV, which would provide room for a more substantial increase in the supply cap. ![Untitled - 2023-07-10T164131.239](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/4/49114e8cf76d1b8812b1c0882df5218bb853f110.jpeg) # Specification | Chain | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap | | --- | --- | --- | --- | --- | --- | | Polygon | WETH | 50,000 | 75,000 | 14,795 | No Change | | Polygon | CRV | 1,130,000 | 1,400,000 | 900,190 | No Change | # Next Steps Once we receive feedback from [@Gauntlet](https://governance.aave.com/u/gauntlet) on the above recommendations, we will be able to move forward to 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:** ![TokenLogic](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/tokenlogic/32/8248_2.png) [@TokenLogic](https://governance.aave.com/u/TokenLogic)\ **Post date:** [July 10, 2023, 3:31pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-weth-and-crv-on-v3-polygon/13953/2 "2023-07-10T15:31:56Z")
At TokenLogic, we are in full supply of increasing the Supply Caps to facilitate the migration of users from v2 to v3 on Polygon. The revised [LTV and LT parameters for CRV](https://app.aave.com/governance/proposal/?proposalId=264) was a vital precursor to increasing the CRV supply cap as detailed in this proposal. ---
**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:** [July 15, 2023, 6:56am UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-weth-and-crv-on-v3-polygon/13953/3 "2023-07-15T06:56:17Z")
As this proposal has been up for a full week, we would appreciate feedback from @Gauntlet to proceed with the implementation and execution of this proposal ---
**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:** [July 17, 2023, 4:10pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-weth-and-crv-on-v3-polygon/13953/4 "2023-07-17T16:10:07Z")
We don’t find a reason to increase WETH supply cap due to current Polygon v3 able to support the majority of such a migration, we prefer to see more supply migrate over from v2 before updating the caps. We support the CRV cap increase. ---
**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:** [July 20, 2023, 9:56am UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-weth-and-crv-on-v3-polygon/13953/5 "2023-07-20T09:56:52Z")
We’ve prepared the payload to be executed via the Risk Steward process for this proposal. > **[Safe{Wallet}](https://app.safe.global/transactions/queue?safe=matic:0x2C40FB1ACe63084fc0bB95F83C31B5854C6C4cB5)** > > 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:** [July 21, 2023, 5:56pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-weth-and-crv-on-v3-polygon/13953/6 "2023-07-21T17:56:25Z")
The CRV update 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:** [August 20, 2023, 5:57pm UTC](https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-caps-weth-and-crv-on-v3-polygon/13953/7 "2023-08-20T17:57:20Z")
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