A proposal to increase the following caps on Aave V3 Arbitrum.:
- WBTC supply cap
- WETH supply and borrow cap
The objective of this proposal is to recommend updated supply and borrow caps for V3 assets that have recently reached over 75% utilization of either cap:
The recommendations provided in this proposal were derived using Chaos Labs’ Updated Supply and Borrow Cap Methodology.
Below are the data and considerations for the assets and recommended caps for these assets:
Given the calculation below, we recommend increasing the supply cap of WBTC by 2X the current cap to 4,200. We do not recommend a change to the borrow cap at this time.
|Current Supply Cap||Extreme Liquidation Amount||Max Amount Liquidated||R||Recommended Supply Cap|
Given the calculation below, we recommend increasing the supply cap of WETH to 70,000. With the utilization of the borrow cap at 75%, we recommend increasing by ~2X the borrow cap to 22,000
|Current Supply Cap*||Extreme Liquidation Amount||Max Amount Liquidated||R||Recommended Supply Cap|
*There is a pending AIP to update the current cap to 45,000. After this cap is implemented, the supply cap utilization, if no further deposits are made, will be at ~72%
Given the data below, we recommend increasing the supply cap of WETH to 9,300. We dont recommend updating the borrow cap at this time
Given the data below, we recommend increasing the supply cap of WETH to 12,000. We dont recommend updating the borrow cap at this time
|Chain||Asset||Current Supply||Current Supply Cap||Recommended Supply Cap||Current Borrow||Current Borrow Cap||Recommended Borrow Cap|
We invite a community discussion around the proposed parameter updates and utilizing the Aave V3 Caps Framework, are targeting an AIP for Monday, April 2nd.