Title: [ARFC] Use Risk Stewards to Increase wstETH Supply Cap
Author: @JMac
Date: 2023-06-06
Summary
There is still a huge amount of demand for supply for wstETH on the Arbitrum network, as shown by how quickly the previous supply cap(s) have filled. This proposal seeks to increase the cap to allow for more supplier to utilize the Aave platform.
Motivation
By increasing the LSTs on L2 pools, smaller users who are not able to efficiently utilize L1 due to higher transaction fees are still able to utilize Aave, and make DeFi more accessible for all.
Specification
The proposed change is a 25% increase in the Supply Cap of stETH on Arbitrum network, from 15k to 18.75k.
The reason for proposing just a 25% increase is twofold. First, by utilizing the new Risk Stewards to enforce these changes, increase can happen much quicker than in previous months.
Second, 18.75k would bring the stETH Supply Cap slightly higher than on the Optimism, which has a current cap of 18k, and is at 90.24% utilization.
Next Steps
See what the Aave community has for feedback, and make sure this proposal is in line with the risk management standards of Aave.
I would like to become a more active member of the Aave community, so any and all feedback on this proposal is encouraged.
