Simple Summary
Per our borrow and supply cap methodology, Gauntlet recommends to increase USDT borrow cap to 45M
Specification
Polygon Aave V3
| Current Value | Recommended Value | |
|---|---|---|
| USDT Borrow Cap | 30,000,000 | 45,000,000 |
Supporting Data
Borrow cap usage for USDT has seen a significant uptick over the last three months. Moreover, the liquidity available on Polygon supports an increase in the borrow cap.
Link to chart
USDT Borrows on all Aave Markets
USDT borrowing activity has been experiencing growth across all markets.
Next Steps
Once we receive feedback from @ChaosLabs on the above recommendations, we will move forward with Risk Steward actions.
Disclaimer
Gauntlet has not received any compensation from any third-party in exchange for recommending any of the actions contained in this proposal.
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Copyright
Copyright and related rights waived via CC0.