[ARFC] Gauntlet Borrow Cap Recommendation for Arbitrum v3 2023-11-27

[Gauntlet]

Summary

Per Gauntlet’s supply and borrow cap methodology, we recommend increasing USDC borrow cap on Arbitrum v3 to 60,000,000.

Specifications

Market	Asset	Parameter	Current Value	Recommended Value
Arbitrum v3	USDC	Borrow Cap	41M	60M

Motivation

The borrow cap for Native USDC surpassed the 75% threshold to 75% usage on Arbitrum Aave V3.

USDC On-Chain Supply

Since Mid-October, the Arbitrum ecosystem has experienced a sizeable gradual growth (72%) in native USDC.

Next Steps

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

[ChaosLabs]

We support the recommendation above.

[Gauntlet]

We’ve prepared the below payload for the above recommendation to be executed via risk steward.

Safe{Wallet}

[ChaosLabs]

The transaction above was successfully executed.