A proposal to increase the borrow cap for WETH on Aave V3 Arbitrum:
The borrow cap for WETH on Arbitrum is currently at a ~93% utilization, which we anticipate will be quickly filled following the increase of the wstETH supply cap, by users borrowing the remaining WETH against it.
We recommend increasing the cap by 2X from 20,000 to 40,000, utilizing the Risk Steward process.
|Chain||Asset||Current Supply Cap||Recommended Supply Cap||Current Borrow Cap||Recommended Borrow Cap|
Once we receive feedback from @Gauntlet on the above recommendations, we will be able to move forward to implement these updates via the Risk Steward process.