# Chaos Labs Risk Stewards - Increase Supply and Borrow Caps on Aave V3 - 04.30.25

**URL:** <https://governance.aave.com/t/chaos-labs-risk-stewards-increase-supply-and-borrow-caps-on-aave-v3-04-30-25/21929>\
**Category:** Governance\
**Created:** [April 30, 2025, 5:57pm UTC](https://governance.aave.com/t/chaos-labs-risk-stewards-increase-supply-and-borrow-caps-on-aave-v3-04-30-25/21929 "2025-04-30T17:57:53Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![ChaosLabs](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/chaoslabs/32/6850_2.png) [@ChaosLabs](https://governance.aave.com/u/ChaosLabs)\
**Post date:** [April 30, 2025, 5:57pm UTC](https://governance.aave.com/t/chaos-labs-risk-stewards-increase-supply-and-borrow-caps-on-aave-v3-04-30-25/21929/1 "2025-04-30T17:57:53Z")

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# **Summary**

A proposal to:

- Increase PT-eUSDE-29MAY2025’s supply cap on the Ethereum Core instance.

All increases are backed by [Chaos Labs’ risk simulations](https://cdn.sanity.io/files/zmh9mnff/production/130e1060165f7ab0766bb4c70cc2ec41c1d1e458.pdf), which consider user behavior, on-chain liquidity, and price impact, ensuring that higher caps do not introduce additional risk to the platform.

## PT-eUSDE-29MAY2025 (Ethereum Core)

PT-eUSDE-29MAY2025 has reached 77% of its supply cap utilization within the first 4 hours of its Aave listing, and we expect significant demand for the asset over the next days.

![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/f/fd8aebf6068ee04534576b093cf98fe97a023975.png)

### Supply Distribution

The asset’s supply is fairly concentrated, with the top 4 users accounting for 78.5% of the total. The biggest supplier maintains a supply-only position, with the rest of the top positions borrowing highly correlated assets such as USDT and USDC. None of the positions poses a liquidation risk.

 ![image (1)](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/2/22f549e7461f8fb342eef9868513978d294811bf.png)

 ![image (2)](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/c/c1855ae75c61b4b5bce28c4049ea95b1f1b3b3b5.png)

### Recommendation

Given safe user behavior and the market’s liquidity, combined with the high demand for the asset, we recommend increasing the supply cap to 250,000,000 PT-eUSDE-29MAY2025.

# **Specification**

| **Instance** | **Asset** | **Current Supply Cap** | **Recommended Supply Cap** | **Current Borrow Cap** | **Recommended Borrow Cap** |
| --- | --- | --- | --- | --- | --- |
| Ethereum Core | PT-eUSDE-29MAY2025 | 150,000,000 | 250,000,000 | - | - |

# **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 ARFC.

# **Copyright**

Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain)

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<div class="post-metadata">

**Author:** ![system](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/e/e11637c36f45ffa158f2146f5c19438d46e0824d.svg) [@system](https://governance.aave.com/u/system)\
**Post date:** [May 30, 2025, 9:22pm UTC](https://governance.aave.com/t/chaos-labs-risk-stewards-increase-supply-and-borrow-caps-on-aave-v3-04-30-25/21929/3 "2025-05-30T21:22:16Z")

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