[ARFC] Chaos Labs Supply and Borrow Cap Updates - 04.21.2023

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ChaosLabs proposed to increase supply and borrow caps for various assets on Aave V3 due to over 75% utilization, with recommendations based on their own methodology. Despite Llamaxyz's ongoing work to increase wETH supply cap on Arbitrum, ChaosLabs recommends a higher cap and is resubmitting an AIP for a new vote, while addressing community queries about cap increases, proposal status, and execution tracking on Layer2 chains.

The discussion primarily revolves around the proposal by ChaosLabs to increase the supply and borrow caps for various assets on Aave V3, including Ethereum (wstETH), Arbitrum (WBTC, WETH), Optimism (WBTC, wstETH), Polygon (LINK, WBTC), and Avalanche (WAVAX). This proposal is driven by the recent over 75% utilization of these caps and the methodologies that allow for an increase. The recommendations were derived using Chaos Labs’ Supply and Borrow Cap Methodology.

Pauljlei pointed out that Llamaxyz is already working on an AIP to increase the wETH supply cap on Arbitrum from 35,280 to 45,000. However, ChaosLabs still recommends increasing the cap to 70,000 in the upcoming vote to reduce governance overhead. A Snapshot for the Avalanche updates has been published by ChaosLabs for the community to vote on. They also announced the end date for a proposal and mentioned that they have published AIP-217 to update supply and borrow caps on V3 Ethereum, Arbirtum, Optimism, and Polygon, starting in 24 hours.

Several questions were raised by community members, including Gohawi8287's query about the reason for the Optimism supply cap increase on wstETH to 12,000 while keeping Arbitrum at 4,650. Holden asked about the status of the proposal, which was initially accepted but later cancelled. ChaosLabs responded that they are working on resubmitting the AIP for a new vote. Moneth asked about tracking execution on Layer2 chains, to which Sakulstra provided a link to the chain executors and mentioned a delay of 2 days on all l2 executors. Pcx questioned why the total supplied Wrapped ETH on the Arbitrum Market is 45k before the proposal is executed. The discussion concluded with ChaosLabs working on resubmitting the AIP for a new vote.

Posted 7 months ago

Last reply 7 months ago

Summary updated 2 months ago

Last updated 06/12 00:43