Supply and Borrow Caps Update - LUSD - v3 Ethereum

Summary

A proposal to increase the LUSD supply cap to 6M and the borrow cap to 2.4M.

Motivation

LUSD is currently at ~96% of its supply cap and ~89% of its borrow cap on Aave V3 Ethereum. This increase in supply and borrow has happened over the past few days following the de-peg events of several stablecoins, including LUSD.

Given the on-chain liquidity levels, current conservative caps set, and the fact that LUSD is a non-collateral asset, we recommend doubling the supply and borrow cap.

The proposal represents a 100% increase from the current caps, making this ARFC compliant with the “direct-to-AIP” framework.

Specification

Ticker: LUSD (LUSD)

Contract Address: 0x5f98805A4E8be255a32880FDeC7F6728C6568bA0

References

• Forum Post

• Proposal payload implementation

• Tests

Copyright

Copyright and related rights waived via CC0.