The discussion primarily revolved around the proposal by Gauntlet to increase the borrow cap for assets wstETH and rETH, which are currently above the 75% threshold. The suggested changes include raising the wstETH Borrow Cap from 3k to 6k and the rETH Borrow Cap from 1.2k to 2.4k. Pauljlei confirmed that Gauntlet intends to publish an AIP for these recommendations in the following week.

The conversation also touched on the possibility of upgrading the rETH oracle to use the Chainlink Oracle, as suggested by MatthewGraham. However, Bgdlabs advised against this, stating that the current rETH on Aave v3 Ethereum uses their sync adapter solution, which operates without any technical risk to Aave. They recommended that this change should not be included in the current proposal and that BGD will submit a proposal batching together all the oracle updates.

Towards the end of the discussion, ChaosLabs pointed out that the supply for rETH has reached approximately 77% of the supply cap and suggested a 2X increase to the supply cap. Pauljlei appreciated this input and confirmed that these changes to rETH will be included in their next AIP. The discussion concluded with the confirmation that the AIP for these parameter changes will be published on 3/21/2023.