[ARFC] - Risk Stewards - Increase Borrow Cap WETH Arbitrum


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
Arbitrum WETH 70,000 No Change 20,000 40,000

Next Steps

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.


Per Gauntlet’s borrow cap methodology, we support this increase in the WETH borrow cap on Arbitrum Aave V3.

We’ve prepared the payload to be executed via the Risk Steward process for this proposal.

When will it be executed ?

This update has been executed via Risk Steward.

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