[ARFC] Gauntlet's Borrow Cap Recommendation - Optimism Aave v3 - 2023-12-29

[Gauntlet]

Per Gauntlet’s supply and borrow caps methodology, we recommend the following borrow cap increase:

Chain	Asset	Current Supply Cap	Recommended Supply Cap	Current Borrow Cap	Recommended Borrow Cap
Optimism	OP	10,000,000	No Change	500,000	1,000,000

Motivation:

Gauntlet proposes to increase borrow cap for OP on optimism v3 market to address the demand for borrowing.

Specifications

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Borrow Cap Usage

_{Link to chart}

Asset	Circulating Supply	DEX 25% Slippage	Global Volume ($)	Global 2% Depth ($)	Top 3 Wallet Amt	Top 5 Wallet Amt
OP	4,294,967,296	474,582	$499,620,680.36	$20,894,103.76	2,389,685,398	2,679,984,839

Next Steps

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

[ChaosLabs]

We support the recommendations 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.