[ARFC] Chaos Labs Risk Stewards - pyUSD Supply and Borrow Cap Increase - 03.01.24


Proposal to increase pyUSD Supply Cap to 40M and Borrow Cap to 18M on Aave V3 Ethereum.


pyUSD Supply Cap has been reached, and the borrow cap is at 84%, indicating heightened demand on all fronts. Given its $300M market cap and particularly considering that supplied pyUSD cannot be utilized as collateral, we recommend increasing the supply cap. The fact that there is ample on-chain liquidity available relative to the current supply and borrow caps further supports this recommendation.

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Screen Shot 2024-03-01 at 18.07.06

Next Steps

We will move forward and implement these updates via the Risk Steward process.


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We at Trident are very supportive. Additionally, more supply side liquidity has been added today, so things are well prepared for this expansion.


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We have created and executed the tx for the proposal above

@ChaosLabs Can you remind the community, what are the risk vectors for pyUSD? Are they primarily centralization risk? Something else? Thank you.

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