[ARFC] - Supply and Borrow Caps Update - wstETH - V3 Arbitrum


This ARFC proposes to increase the wstETH supply cap to 4,650 on Aave V3 Arbitrum.


wstETH is currently at 100% utilization of its supply cap on Aave V3 Arbitrum. This increase happened over the past couple of days after the supply cap was doubled from 1,200 to 2,400.

To calculate the new cap, we have utilized our supply cap methodology. As wstETH is in the ETH-correlated emode, we have simulated a 15% drop in its price to evaluate the amount that would be liquidated, and assessed the on-chain liquidity that would allow for profitable liquidations under the 2% LP configured for the emode.

Supply Cap Extreme Liquidation Amount Max Amount Liquidated R Recommended Supply Cap
wstETH 2,400 $621,000 $1,080,000 1.93 4,650

The proposal represents a near 100% increase from the current caps, making this ARFC compliant with the “direct-to-AIP” framework.


Ticker: wstETH (wstETH)

Contract Address: 0x5979D7b546E38E414F7E9822514be443A4800529

Parameter Current Proposed
Supply Cap 2,400 4,650
Borrow Cap 190 400

Due to the high utilization of the borrow cap, we have updated this proposal to increase the borrow cap by 2X (rounded up) to 400 wstETH


We have published AIP-186 for community members to vote on, starting in 24h.

Thank you in advance for your participation in the vote.