# ARFC: Gauntlet Supply Cap Updates for WMATIC on Polygon Aave V3 2023-07-28 **URL:** \ **Category:** Risk\ **Created:** [July 28, 2023, 10:40pm UTC](https://governance.aave.com/t/arfc-gauntlet-supply-cap-updates-for-wmatic-on-polygon-aave-v3-2023-07-28/14181 "2023-07-28T22:40:20Z")\ **Posts on this page:** 6\ **Page:** 1
**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:** [July 28, 2023, 10:40pm UTC](https://governance.aave.com/t/arfc-gauntlet-supply-cap-updates-for-wmatic-on-polygon-aave-v3-2023-07-28/14181/1 "2023-07-28T22:40:21Z")
## Summary Gauntlet recommends supply cap changes for one asset on Polygon Aave V3. Per Gauntlet’s [supply and borrow cap methodology](https://governance.aave.com/t/gauntlet-methodologies-borrow-and-supply-cap/11487), we recommend increasing WMATIC supply cap to 120,000,000. ## Motivation The supply cap for WMATIC surpassed the 75% threshold to 76% usage on Polygon Aave V3. Based on the asset’s market ADV and liquidity depth, our Methodology supports increasing the cap to 120M ($85M). ![](https://hackmd.io/_uploads/Hy63Jabj2.png) ## Specifications ### Polygon Aave V3 | Parameter | Current Value | Recommended Value | | --- | --- | --- | | WMATIC Supply Cap | 105,000,000 | 120,000,000 | * * * ## Next Steps Once we receive feedback from @ChaosLabs on the above recommendations, we will move forward with Risk Steward actions. ---
**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:** [July 30, 2023, 6:24pm UTC](https://governance.aave.com/t/arfc-gauntlet-supply-cap-updates-for-wmatic-on-polygon-aave-v3-2023-07-28/14181/2 "2023-07-30T18:24:23Z")
We support the proposed update ---
**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:** [August 3, 2023, 1:48am UTC](https://governance.aave.com/t/arfc-gauntlet-supply-cap-updates-for-wmatic-on-polygon-aave-v3-2023-07-28/14181/3 "2023-08-03T01:48:26Z")
We’ve queued up the [transaction](https://app.safe.global/transactions/queue?safe=matic:0x2C40FB1ACe63084fc0bB95F83C31B5854C6C4cB5) to be executed via Risk Steward. ---
**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:** [August 3, 2023, 7:55am UTC](https://governance.aave.com/t/arfc-gauntlet-supply-cap-updates-for-wmatic-on-polygon-aave-v3-2023-07-28/14181/4 "2023-08-03T07:55:40Z")
We’ve observed multiple withdrawals of WMATIC over the past few days, resulting in a current supply of approximately 66.69M WMATIC amounting to less than 64% of the supply cap. Considering this level of utilization, we suggest waiting with the execution of this proposal. ---
**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:** [August 4, 2023, 3:25pm UTC](https://governance.aave.com/t/arfc-gauntlet-supply-cap-updates-for-wmatic-on-polygon-aave-v3-2023-07-28/14181/5 "2023-08-04T15:25:15Z")
Given the WMATIC supply cap utilization has decreased to 61%, we have rejected the risk steward transaction. Once @ChaosLabs signs and executes the rejection, the risk steward transaction will be canceled. ---
**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:** [August 6, 2023, 9:28am UTC](https://governance.aave.com/t/arfc-gauntlet-supply-cap-updates-for-wmatic-on-polygon-aave-v3-2023-07-28/14181/6 "2023-08-06T09:28:31Z")
The rejection transaction has been executed. The risk steward transaction has been canceled.