[ARFC] - Chaos Labs Supply and Borrow Cap Updates - Aave V3 Polygon - 2023.03.16

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The discussion focused on a proposal to increase the MAI supply cap to 2.2M and the borrow cap to 1.2M on Aave V3 Polygon due to high utilization rates, with similar increases suggested for stMATIC. The meeting concluded with the announcement of AIP-186 for community voting and a brief overview of Aave's functionality.

The discussion primarily revolved around the proposal to increase the MAI (mimatic) supply cap to 2.2M and the borrow cap to 1.2M on Aave V3 Polygon, as suggested by ChaosLabs. This was due to the current 80% utilization of its supply cap and 85% utilization of its borrow cap1. Other assets such as GHST, SUSHI, BAL, EURS, and LINK were also noted to be at >75% of their supply or borrow cap, but no increase was recommended for these due to current liquidity levels1.

Llamaxyz brought attention to the CRV proposal that went live on Polygon v3 and reached 100% utilisation within 24 hours. They also highlighted the increase in utilisation of stMATIC Supply Cap from 50% to 70% without incentives, following a recent increase. They suggested further increasing the stMATIC Supply Cap ahead of the LDO rewards distribution2. However, ChaosLabs did not recommend increasing the supply cap for CRV due to its low on-chain liquidity, but suggested doubling the current supply and setting a new supply cap at 21M for stMATIC3. Seawolf also shared Gauntlet’s Conservative and Aggressive recommendations for stMATIC, suggesting a conservative cap of 13,538,000 and an aggressive cap of 22,563,0004.

The discussion concluded with ChaosLabs announcing the publication of AIP-186 for community members to vote on, starting in 24 hours5. They also shared a link to Aave, an open source protocol designed to create non-custodial liquidity markets, allowing users to earn interest on supplying and borrowing assets with a variable or stable interest rate5.

Posted 9 months ago

Last reply 9 months ago

Summary updated 2 months ago

Last updated 08/12 04:39