[ARFC] Chaos Labs Risk Stewards - Increase Supply Caps WETH and CRV on V3 Polygon


A proposal to increase the supply cap for WETH and CRV on Aave V3 Polygon.


Following the community approval of the AIP 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. Below are the data considerations and recommendations for all assets:


Untitled - 2023-07-10T164117.242


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 the LTs for CRV, which would provide room for a more substantial increase in the supply cap.
Untitled - 2023-07-10T164131.239


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 on the above recommendations, we will be able to move forward to implement these updates via the Risk Steward process.


Chaos Labs has not been compensated by any third party for publishing this ARFC.


Copyright and related rights waived via CC0

1 Like

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 was a vital precursor to increasing the CRV supply cap as detailed in this proposal.

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

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.

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

The CRV update has been executed via risk steward.

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