[ARFC] - Risk Stewards - Increase Supply and Borrow Cap on V3 Ethereum 08.09.2023


A proposal to increase the borrow cap for USDT and supply cap for MKR on Aave V3 Ethereum.



The borrow cap for USDT on Ethereum is currently at a ~80% utilization.

We recommend increasing the cap from 185M to 250M.


The current supply cap for MKR allows for an additional 2,300 MKR to be supplied to V3. To enable migration from V3, we recommend increasing the supply cap to 10,000 MKR. This would allow the largest MKR-supplied account on v2 to migrate (the potential intent of the user to migrate the position can be found here). As MKR is listed in isolation mode and with the current set debt ceiling, this supply cap increase does not introduce significant additional risk to the protocol.


The borrow cap for rETH on Ethereum is currently at ~100% utilization.

We recommend increasing the cap from 2,400 to 4,800.


Chain Asset Current Supply Cap Recommended Supply Cap Current Borrow Cap Recommended Borrow Cap
Ethereum USDT 300,000,000 No Change 185,000,000 250,000,000
Ethereum MKR 6,000 10,000 1,500 No Change
Ethereum rETH 60,000 No Change 2,400 4,800

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.


Just checking in here… any new developments on comment collection? Thanks!

We are still awaiting feedback from @Gauntlet and will move forward to implementing the updates once received.

Since the original post, the borrow cap of rETH on Ethereum has reached 100% utilization - we have added a recommendation to increase this cap by 2X in the original post above.

We are aligned with these cap increases.

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

This has been executed via risk steward.

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Is there an anticipated time for this to be executed/voted on? Or am I missing a step in the governance sequence?

Its already executed with the risk steward.

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I’m still getting an error when I attempt to migrate to v3… see the error message in app.defisaver

Can someone on the AAVE team take a look at anything that could be causing this on the AAVE side… or is this just a DefiSaver bug?

Hi, as you are using DefiSaver you would have to ask them. Why not use the button on the Aave website? There you can also migrate from v2 to v3.
See here: Migration from V2 to V3 - FAQ

Even when I use the AAVE app… it says there there are no assets to migrate.

I’d be happy to DM you the wallet address if you want to see in simulation mode what I’m dealing with.

Unless there are multiples peoples with 5.7k MKR borrowing 1.4M Dai we already know your wallet address (it’s in the originnal post under motivation>MKR)

The kind of position you are trying to take is only available in isolation-mode, but I don’t know how it interact with migration (I would guess activating I-mode on your v3 account and migrating should do it but don’t quote me on that)

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@Alice @EzR3aL and @Leritu the governance forum & this thread are not a support channel, there’s a discord for this, please refrain from having this kind of discussion here.


@MarcZeller I think your shut down of the discussion here is premature, and a little too harsh.

To the posters in this thread, It is still unclear if this is still a risk issue, a support issue, or an Aave app issue. As soon as it is clear which issue it is, we will move the discussion to the appropriate forum.

I was the one that brought this oversight to risk’s attention that your largest MKR position could not migrate to v3 begin with — I’d have appreciated a little effort from you to add value here rather than a reprimand.

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@ChaosLabs Okay, all technical issues have been solved… but now the supply cap of available MKR is slightly below my position. I’m stuck again. Can we get one more jump to the supply cap and then I can immediately move the position over? The headroom for the move is not much for me to squeeze through between the execution of the increase and my position.

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