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The Aave community discussed a proposal to increase the borrow cap for MAI on the Aave V3 Polygon market, with some members supporting the increase to meet market demand, while others suggested a reduction to allow for organic growth. The final decision is still pending.
The discussion primarily revolved around the proposal of an Aave Request For Comment (ARFC) by MarcZeller to increase the borrow cap for MAI on the Aave V3 Polygon market. The aim was to raise the cap to 1M MAI to cater to the market demand, as the current cap was seen as a limitation to the MAI supplied and potential demand1. This proposal was supported by Benjamin918 from QiDao, who cited the ample liquidity for MAI on Polygon3.
However, ChaosLabs suggested a different approach, recommending a reduction in the supply cap of MAI to 1,086,000 and setting the borrow cap at 597,3004. This recommendation was agreed upon by Pauljlei from the Gauntlet team, who saw it as a way to allow room for organic growth5. Despite this, 0xNacho disagreed with the recommendations, arguing that the existence of borrowing limits, intended to prevent liquidity pool insolvency, is unnecessary for MAI due to its deep and diversified liquidity sources and overcollateralised nature7.
In conclusion, the discussion led to a divergence of opinions on the best way to manage the borrow cap for MAI on the Aave V3 Polygon market. While some community members supported an increase to meet market demand, others advocated for a reduction to allow for organic growth. The final decision on the matter is yet to be made.
Posted 10 months ago
Last reply 10 months ago
Summary updated 2 months ago
Last updated 04/12 00:18