Thanks all for the feedback. Given this initial support, we plan on moving forward to the ARFC stage with a Snapshot vote targeting next week.
For more context, below are data on current and recommended values and data on liquidatable accounts (number and $) under different LTs.
Note that for native USDC, Aggressive caps are higher than Conservative caps, but for USDC.e, Aggressive caps are lower than Conservative caps. This is intended for the purpose of migration (e.g., asset flows from USDC.e to native USDC).
One exception: for USDC.e borrow cap, the conservative value is greater than the current parameter value. If the conservative option is chosen, we would not move forward with increasing USDC.e borrow cap, as that would be against the intent of this migration recommendation.
| Parameter | Current Parameter Value | Current Supply or Borrow | Aggressive Recommended Value | Conservative Recommended Value |
|---|---|---|---|---|
| USDC Borrow Cap | 41,000,000 | 12,000,000 | 105,000,000 | 70,000,000 |
| USDC Supply Cap | 41,000,000 | 14,000,000 | 165,000,000 | 110,000,000 |
| USDC.e Borrow Cap | 100,000,000 | 29,000,000 | 70,000,000 | 105,000,000 |
| USDC.e Supply Cap | 150,000,000 | 33,000,000 | 110,000,000 | 120,000,000 |
Liquidations Data:
Total user count and amount liquidated for dropping USDC.e on Aave V3 on Arbitrum LT to 83%, 80%, and 76%.
83%: 553 liquidated users ($14,217)
80%: 1464 liquidated users ($218,726)
76%: 1864 liquidated users ($313,826)