Proposal overview
Supply/Borrow Cap Updates V3 Arbitrum, Optimism, Polygon
Simple Summary
A proposal to adjust twenty-three (23) total risk parameters, including Supply Cap and Borrow Cap, across fourteen (14) assets on Aave V3 Polygon, Arbitrum,and Optimism.
Motivation
The objective of this proposal is to recommend updated supply and borrow caps for:
- V3 stablecoins that have excessive supply caps set and/or have no set borrow cap.
- The caps are intended to allow for substantial growth compared to the current supply while not set too excessively.
- The recommendations for the supply caps are set to up to 40% of the circulating supply for most assets and no more than 60%. You can find the exact number for each asset in the tables below. Borrow caps are set to ~65% of the supply cap.
- V3 assets that have reached over 75% utilization of either cap.
- The recommendations provided in this proposal were derived using Chaos Labs’ Updated Supply and Borrow Cap Methodology. Below are the data and considerations for the assets and recommended caps for these assets.
- Assets with a supply cap that is >50% of the asset's total on-chain circulating supply.
There following assets are at >75%. However, we do not recommend increasing their caps at this time due to current liquidity levels:
GHST (V3 Polygon) SUSHI (V3 Polygon) BAL (V3 Polygon) AAVE (V3 Arbitrum)
The respective governance forum discussion is linked below:
Specification
The following risk parameter proposal is presented below:
Arbitrum
| Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap | Notes |
|---|---|---|---|---|---|
| DAI | 2,000,000,000 | 50,000,000 | N/A | 30,000,000 | 38% of the circulating supply |
| EURS | N/A | 60,000 | N/A | 45,000 | 60% of the circulating supply |
| USDC | 2,000,000,000 | 150,000,000 | N/A | 100,000,000 | 16% of the circulating supply |
| USDT | 2,000,000,000 | 50,000,000 | N/A | 35,000,000 | 20% of the circulating supply |
| AAVE | 2,500 | 1,850 | N/A | N/A | freezes supply |
Optimism
| Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap | Notes |
|---|---|---|---|---|---|
| DAI | 2,000,000,000 | 25,000,000 | N/A | 16,000,000 | 35% of the circulating supply |
| sUSD | 20,000,000 | No Change | N/A | 13,000,000 | 25% of the circulating supply |
| USDC | 2,000,000,000 | 150,000,000 | N/A | 100,000,000 | 43% of the circulating supply |
| USDT | 2,000,000,000 | 25,000,000 | N/A | 16,000,000 | 47% of the circulating supply |
| AAVE | 100,000 | 45,000 | N/A | N/A | freezes supply |
| LINK | 258,000 | 160,000 | 141,900 | 84,000 | |
| WBTC | 1,100 | 620 | 605 | 250 | freezes supply |
Polygon
| Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|
| WETH | 26,900 | 50,000 | 14,795 | No Change |
| AAVE | 36,820 | 70,000 | N/A | N/A |
References
Tests: Arbitrum, Polygon, Optimism
Proposal payload implementation: Arbitrum, Polygon, Optimism
Copyright
Copyright and related rights waived via CC0.
Your voting info
Voting results
YAE
429,164
AAVE100.00%
NAY
0
AAVE0%
Votes
Executed on
Mar 11, 2023Required
429.16K
320.00K
Required
429.16K
80,000.00
16,000,000
Proposal details
Block
6 Mar 2023, 15:11 UTC +00:00
16770122
Block
7 Mar 2023, 15:29 UTC +00:00
16777322
Block
10 Mar 2023, 07:29 UTC +00:00
16796522
11 Mar 2023, 08:24 UTC +00:00
Chaos Labs (@ori-chaoslabs, @yhayun)