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ChaosLabs proposed increasing supply and borrow caps on Aave V3 Arbitrum for WBTC, WETH, and wstETH, but Pauljlei from Gauntlet suggested a conservative approach due to the upcoming Shanghai Upgrade. The community agreed to postpone the discussion until after the upgrade, emphasizing the importance of risk management and consensus in decision-making.
The discussion primarily revolved around the proposal by ChaosLabs to increase the supply and borrow caps on Aave V3 Arbitrum for certain assets that have reached over 75% utilization. The assets in question were WBTC, WETH, and wstETH on both V3 Arbitrum and V3 Optimism. The community was invited to discuss these proposed updates, with an AIP targeted for Monday, April 2nd1.
However, the discussion took a turn when Pauljlei from Gauntlet suggested a more conservative approach due to the impending Shanghai Upgrade. They recommended smaller increases for the wETH and wBTC supply caps and suggested postponing any changes to the wstETH supply cap until after the upgrade on April 12th5. This was due to potential risks associated with a large increase in wstETH supply cap or wETH borrow cap, especially preceding the upgrade5.
In response to these concerns, ChaosLabs agreed to postpone the discussion for supply cap increases until after the Shanghai update, acknowledging the lack of consensus among risk providers6. This decision highlights the community's commitment to careful risk management and the importance of consensus in decision-making processes.
Posted 8 months ago
Last reply 8 months ago
Summary updated 2 months ago
Last updated 03/12 08:00