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

Governance
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Summary

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

Motivation

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.

Untitled (49)

Specification

Screen Shot 2024-03-01 at 18.07.06

Next Steps

We will move forward and 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

4 Likes
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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.

Cheers,
M

1 Like
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We have created and executed the tx for the proposal above

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@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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