Overview
Chaos Labs recommends reducing the supply and/or borrow caps for select underutilized assets across Aave deployments. These adjustments are precautionary in nature and aim to better align protocol parameters with observed market activity. Should demand increase in the future alongside growth-specific risk requirements, we are prepared to revert these caps to their original levels.
Motivation
Through our ongoing monitoring of the Aave protocol, we have identified several assets with consistently low utilization. While these markets do not currently pose a significant risk, lowering their caps is a prudent step to mitigate theoretical exposure and ensure the protocol’s parameters reflect actual demand.
On ZkSync, assets such as WETH, USDC, and USDT have exhibited minimal supply and borrow activity in recent weeks. As illustrated below, cap utilization remains significantly low, indicating excess capacity relative to market interest.
Similarly, Scroll has experienced a notable contraction in on-chain liquidity. The supply caps for WETH, USDC, and wstETH remain substantially underutilized. Given the sustained low demand across these assets, we propose reducing their respective caps as a preventative measure.
Specification
| Instance | Asset | Curr. Supply Cap | Rec. Supply Cap | Curr. Borrow Cap | Rec. Borrow Cap |
|---|---|---|---|---|---|
| Scroll | WETH | 60K | 30K | 54K | 27K |
| Scroll | USDC | 30M | 10M | 27M | 9M |
| Scroll | wstETH | 6K | 4.5K | 1.3K | - |
| ZkSync | USDC | 32M | 15M | 28.8M | 13.5M |
| ZkSync | WETH | 15K | 7K | 11K | 5.6K |
| ZkSync | USDT | 3M | 2M | 2.7M | 1.8M |
Next Steps
We will move forward and implement these updates via the Risk Steward process.
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this AGRS recommendation.
Copyright
Copyright and related rights waived via CC0