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

**URL:** <https://governance.aave.com/t/arfc-gauntlets-borrow-cap-recommendation-optimism-aave-v3-2023-12-29/15978>\
**Category:** Governance\
**Created:** [December 29, 2023, 9:14pm UTC](https://governance.aave.com/t/arfc-gauntlets-borrow-cap-recommendation-optimism-aave-v3-2023-12-29/15978 "2023-12-29T21:14:42Z")\
**Posts on this page:** 5\
**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:** [December 29, 2023, 9:14pm UTC](https://governance.aave.com/t/arfc-gauntlets-borrow-cap-recommendation-optimism-aave-v3-2023-12-29/15978/1 "2023-12-29T21:14:42Z")

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Per Gauntlet’s supply and borrow caps [methodology](https://governance.aave.com/t/gauntlet-methodologies-borrow-and-supply-cap/11487), 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

* * *

#### Borrow Cap Usage

![image](https://hackmd.io/_uploads/rkuOzh2va.png)  
[Link](https://risk.gauntlet.xyz/protocols/aave/markets/optimism/assets/op?fullscreen=asset_timeseries_borrow_cap_usage) to chart

![image](https://hackmd.io/_uploads/rJ57r33Pa.png)

| 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.

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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:** [December 29, 2023, 11:22pm UTC](https://governance.aave.com/t/arfc-gauntlets-borrow-cap-recommendation-optimism-aave-v3-2023-12-29/15978/2 "2023-12-29T23:22:15Z")

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We support the recommendations above.

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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:** [January 2, 2024, 11:16pm UTC](https://governance.aave.com/t/arfc-gauntlets-borrow-cap-recommendation-optimism-aave-v3-2023-12-29/15978/3 "2024-01-02T23:16:00Z")

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

> **[Safe{Wallet}](https://app.safe.global/transactions/queue?safe=oeth:0xCb86256A994f0c505c5e15c75BF85fdFEa0F2a56)**
>
> Safe (prev. Gnosis Safe) is the most trusted platform to manage digital assets on Ethereum and multiple EVMs. Over $40B secured.

---

<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:** [January 2, 2024, 11:42pm UTC](https://governance.aave.com/t/arfc-gauntlets-borrow-cap-recommendation-optimism-aave-v3-2023-12-29/15978/4 "2024-01-02T23:42:26Z")

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The transaction above was successfully executed.

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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:** [February 1, 2024, 11:43pm UTC](https://governance.aave.com/t/arfc-gauntlets-borrow-cap-recommendation-optimism-aave-v3-2023-12-29/15978/5 "2024-02-01T23:43:23Z")

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Closed on February 1, 2024, 11:43pm UTC

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