Proposal updated to include @ChaosLabs feedback
title: [ARFC] Increase Supply Caps for LSTs on AAVE V3
author: @marczeller - Aave Chan Initiative
This ARFC proposes a increase in the supply caps for several Liquid Staking Tokens (LSTs) across multiple networks, including stETH, rETH, and sAVAX. The proposed changes are within the limits of the Risk Stewards and are requested for enforcement by them.
The supply caps for several LSTs have reached or are nearing their current limits. To ensure the continued smooth operation of the protocol and to accommodate growing demand, this ARFC proposes to increase these caps. The proposed increases range from 50% to 100%, depending on the asset and network.
The motivation behind these changes is to accommodate the growing demand for these LSTs in the Aave protocol. By increasing the supply caps, we can ensure that the protocol can continue to serve its users effectively. Furthermore, LSTs in L2 pools are essential for users who can’t afford the transaction fees on L1. DeFi should be inclusive and is meant for everyone, and L2s are important to reach this goal.
The proposed changes are as follows:
|Asset||Network||Current Cap||Current Supplied Liquidity||Utilization||Proposed Cap Increase||New Cap||New Utilization|
We request the Risk Stewards to enforce these changes. This proposal is compliant with the Aave V3 Caps Update Framework, and since the AIP-234 vote, the Risk Council via the Risk Steward can enforce this framework.
Collect feedback from the community & Risk service providers. If the feedback is positive, the Risk Stewards will enforce the proposed changes. We encourage all Aave users to participate in this discussion and provide their feedback.
The Aave Chan Initiative (ACI) is not associated with or compensated by Lido, Rocket Pool, Avalanche, BenQI, or any other third party for publishing this ARFC.
Copyright and related rights waived via CC0.
note: please consider that StETH & rETH L1 update and StETH OP update reflect @Llamaxyz work on it and already reached consensus, it has been cited here for easier understanding of upcoming supply caps changes.