[ARFC] Gauntlet Borrow and Supply Cap Recommendations for Metis, Arbitrum, Optimism, Ethereum Aave V3 2023-09-20

Governance
1

Per our borrow and supply cap methodology, Gauntlet recommends borrow and supply cap changes for assets on Metis, Arbitrum, Optimism, Ethereum v3.

Specifications

Chain Asset Cap Current Recommended
Arbitrum WSTETH Borrow 1600 2400
Optimism WSTETH Borrow 940 1500
Ethereum WSTETH Supply 750k 1m
Metis METIS Supply 120k 240k
Metis m.USDT Supply 1.4m 2.0m
Metis m.USDT Borrow 1.4m 2.0m
Metis m.USDC Supply 1.2m 2.0m
Metis m.USDC Borrow 1.2m 2.0m
Metis WETH Supply 300 450
Metis WETH Borrow 90 180

Motivations

The above assets have seen increased cap usage. We welcome the community to our dashboard
to explore how cap usage has evolved.

Screen Shot 2023-09-20 at 11.50.37 AM

Next Steps

Once we receive feedback from @ChaosLabs on the above recommendations, we will move forward with Risk Steward.

2

Thanks for sharing this @Gauntlet.
We provided analysis and recommendations for Metis caps increases here.

We support the following:

Chain Asset Cap Current Gauntlet Rec Chaos Rec
Arbitrum WSTETH Borrow 1600 2400 2400
Optimism WSTETH Borrow 940 1500 1500
Ethereum WSTETH Supply 750k 1m 850k
Metis METIS Supply 120k 240k 240k
Metis m.USDT Supply 1.4m 2.0m 2.8M
Metis m.USDT Borrow 1.4m 2.0m 2.5M
Metis m.USDC Supply 1.2m 2.0m 2.4
Metis m.USDC Borrow 1.2m 2.0m 2.15
Metis WETH Supply 300 450 No Change
Metis WETH Borrow 90 180 180
3

Gauntlet and Chaos also aligned on increasing LUSD supply caps from 1.8M to 2.2M and borrow caps from 900K to 1.8M on Arbitrum. Note that the Arbitrum LUSD and Metis METIS changes cannot be implemented yet due to a timelock from recent updates, so we will follow up with these changes on Monday, September 25. We’ve queued all the remaining caps updates via Risk Steward for this proposal.

Arbitrum: https://app.safe.global/transactions/queue?safe=arb1:0x3Be327F22eB4BD8042e6944073b8826dCf357Aa2

Optimism: https://app.safe.global/transactions/queue?safe=oeth:0xCb86256A994f0c505c5e15c75BF85fdFEa0F2a56

Ethereum: Safe{Wallet} – Transaction queue

Metis: MetisSafe – Transaction queue

4

The above transactions have been executed via Risk Steward

5

The Arbitrum LUSD and Metis METIS changes are queued here via Risk Steward.

Arbitrum

Metis

6

The Arbitrum LUSD and Metis METIS updates have been executed via Risk Steward

7

This topic was automatically closed 30 days after the last reply. New replies are no longer allowed.