title: [ARFC] Supply Cap increase - wstETH
author: Alice Rozengarden @Alice - Aave-chan initiative
This proposal seeks to increase the supply cap for the wstETH token on the following markets:
- Arbitrum V3
- Polygon V3
- Optimism V3
This proposal is compatible with the Direct-to-AIP framework.
On the Arbitrum V3, Optimism V3, and Polygon V3 markets, the utilization of the supply cap reached 77%, 90%, and 100% respectively. Augmenting those caps would allow for a higher TVL resulting in a better experience for the user of Aave and the ecosystem built around the LSD yield leveraging. This would also increase protocol revenue via more borrowing of WETH on those diverse platforms.
Along with the utilization of the supply cap, the Total supply of this asset increased as well, which would allow the increase of those caps without compromising on the 75% of the total supply threshold.
The following parameters would be modified for the wstETH token:
|Token||Current supply cap||Proposed supply cap||Increase||Total Supply||Total Supply (%)|
|wstETH Arbitrum V3||30k||45k||50%||80k||56.25%|
|wstETH Optimism V3||23k||34.5k||50%||46k||75%|
|wstETH Polygon V3||2.7k||3.45k||~28%||4.6k||75%|
- wstETH Arbitrum: 0x5979d7b546e38e414f7e9822514be443a4800529
- wstETH Optimism: 0x1f32b1c2345538c0c6f582fcb022739c4a194ebb
- wstETH Polygon: 0x03b54a6e9a984069379fae1a4fc4dbae93b3bccd
This proposal is powered by Skyward.
The author doesn’t possess wstETH tokens at the time of writing and isn’t compensated by LIDO for this ARFC.
This proposal is compatible with the Direct-to-AIP framework, meaning the next steps are:
- Get approval from at least one risk provider
- Publish an AIP
Copyright and related rights waived via CC0.