This ARFC proposes to increase the supply cap of wstETH on the Aave V3 Arbitrum market by 100%. wstETH is a wrapped version of stETH, a liquid staking token, created when users stake ETH through the Lido protocol. The proposal aims to raise the supply cap to 9,300 wstETH to meet the growing market demand for depositing asset on the ever-growing arbitrum ecosystem.
With wstETH currently at 100% of its supply cap (4,650) ) on Aave V3 Arbitrum market, increasing caps by 100% will allow more users to utilize the platform and meet market demand. The proposed cap of 9,300 wstETH for the supply offers a balance between accommodating demand and maintaining a conservative approach while doubling the current cap.
Ticker: wstETH (Wrapped stETH)
Contract Address on Arbitrum: 0x5979d7b546e38e414f7e9822514be443a4800529
The proposer is not affiliated with or paid by Lido Finance to publish this ARFC.
At the time of writing, the author holds wstETH on ETH L2 Arbitrum.
To introduce myself briefly, I am an individual person, living in Europe, in my twenties, firmly believing in this swift of this financial paradigm.
I am also a regular Aave user, who decided to take a move and get more involved with the DEFI protocols that make sense for the ecosystem.
Therefore I might not be aware of all the processes to push an ARFC on Aave.
concerning the ARFC,
We can arguably say that the demand is very high as all the precedents increases were filled in hours.
Optimism has a supply cap of 6,000 wsteth while Arbitrum is standing at 4,650 wsteth despite the fact that the network is more highly used than its competitor (with more liquidity).
as for the Gauntlet Methodologies mentioned by @Pauljlei,
We could then take an aggressive approach for a ~50% increase (7’000 wsteth).