# \[ARFC\] Gauntlet recommendation to re-enable CRV borrowing on v3 Ethereum/Polygon

**URL:** <https://governance.aave.com/t/arfc-gauntlet-recommendation-to-re-enable-crv-borrowing-on-v3-ethereum-polygon/15513>\
**Category:** Governance\
**Created:** [November 13, 2023, 7:33pm UTC](https://governance.aave.com/t/arfc-gauntlet-recommendation-to-re-enable-crv-borrowing-on-v3-ethereum-polygon/15513 "2023-11-13T19:33:38Z")\
**Posts on this page:** 6\
**Page:** 1

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**Author:** ![Gauntlet](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/gauntlet/32/4064_2.png) [@Gauntlet](https://governance.aave.com/u/Gauntlet)\
**Post date:** [November 13, 2023, 7:33pm UTC](https://governance.aave.com/t/arfc-gauntlet-recommendation-to-re-enable-crv-borrowing-on-v3-ethereum-polygon/15513/1 "2023-11-13T19:33:38Z")

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During the Vyper exploit, [CRV borrowing was disabled](https://governance.aave.com/t/arfc-chaos-labs-disable-borrows-for-crv-on-v3-ethereum-and-polygon/14377) on Ethereum and Polygon v3 with the hope of mitigating downward CRV price movement in light of excess CRV positions on Aave v2.

Given that a large majority of those CRV positions with excess risk have left the system, Gauntlet recommends reactivating CRV borrowing. In order to do so, we recommend a few other changes to CRV parameterization.

## Recommendations

Ethereum v3

- Lower supply cap from 51m → 7.5m, due to [low usage](https://risk.gauntlet.network/protocols/aave/markets/ethereum/assets/crv?fullscreen=asset_timeseries_supply_cap_usage).
- Lower borrow cap from 7.7m → 5m due to [low usage](https://risk.gauntlet.network/protocols/aave/markets/ethereum/assets/crv?fullscreen=asset_timeseries_borrow_cap_usage).
- Lower debt ceiling from $5m → $1m due to low usage.
  - current debt ceiling usage is $17k / $5m.

- Reactivate CRV borrowing.

 ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/6/6570a51ba45601f6e3e41a6e23bacd13a394cfb7.png)

Polygon v3

- Lower borrow cap from 900k → 300k due to [low usage](https://risk.gauntlet.network/protocols/aave/markets/polygon/assets/crv?fullscreen=asset_timeseries_borrow_cap_usage).
- Reactivate CRV borrowing.

Proposed caps will be more aligned with our conservative cap methodology, and current supply/borrows will be \<= 20% of proposed caps on v3 Ethereum. Gauntlet believes lowering caps to align with our conservative methodology - given current usage - may help balance room for future demand with while mitigating risks associated with tail liquidity drops.

## Next steps

Welcome community feedback and put up snapshot on 2023-11-20.

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<div class="post-metadata">

**Author:** ![ChaosLabs](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/chaoslabs/32/6850_2.png) [@ChaosLabs](https://governance.aave.com/u/ChaosLabs)\
**Post date:** [November 16, 2023, 3:41am UTC](https://governance.aave.com/t/arfc-gauntlet-recommendation-to-re-enable-crv-borrowing-on-v3-ethereum-polygon/15513/2 "2023-11-16T03:41:48Z")

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Chaos Labs supports the above recommendations

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<div class="post-metadata">

**Author:** ![Gauntlet](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/gauntlet/32/4064_2.png) [@Gauntlet](https://governance.aave.com/u/Gauntlet)\
**Post date:** [November 20, 2023, 10:15pm UTC](https://governance.aave.com/t/arfc-gauntlet-recommendation-to-re-enable-crv-borrowing-on-v3-ethereum-polygon/15513/3 "2023-11-20T22:15:44Z")

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The snapshot has been posted [here](https://snapshot.org/#/aave.eth/proposal/0x2db7ffd336637173a5c58f6bbb3609c17bba1b16740d8b3b0ea23a694f4c7b52).

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**Author:** ![GHOsting](https://avatars.discourse-cdn.com/v4/letter/g/b3f665/32.png) [@GHOsting](https://governance.aave.com/u/GHOsting)\
**Post date:** [November 21, 2023, 3:33am UTC](https://governance.aave.com/t/arfc-gauntlet-recommendation-to-re-enable-crv-borrowing-on-v3-ethereum-polygon/15513/4 "2023-11-21T03:33:26Z")

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CRV situation is much more stable now.

Seems safe to reactivate CRV borrowing with the recommendations given.

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<div class="post-metadata">

**Author:** ![Gauntlet](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/gauntlet/32/4064_2.png) [@Gauntlet](https://governance.aave.com/u/Gauntlet)\
**Post date:** [December 9, 2023, 6:03am UTC](https://governance.aave.com/t/arfc-gauntlet-recommendation-to-re-enable-crv-borrowing-on-v3-ethereum-polygon/15513/5 "2023-12-09T06:03:03Z")

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The AIP has been published [here](https://app.aave.com/governance/proposal/?proposalId=400).

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<div class="post-metadata">

**Author:** ![system](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/e/e11637c36f45ffa158f2146f5c19438d46e0824d.svg) [@system](https://governance.aave.com/u/system)\
**Post date:** [January 8, 2024, 6:03am UTC](https://governance.aave.com/t/arfc-gauntlet-recommendation-to-re-enable-crv-borrowing-on-v3-ethereum-polygon/15513/6 "2024-01-08T06:03:17Z")

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Closed on January 8, 2024, 6:03am UTC

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