The discussion primarily revolved around a proposal by ChaosLabs to reduce the Supply and Borrow Caps and Debt Ceiling for MAI on Aave V3 Polygon, Avalanche, Arbitrum, and Optimism. This proposal was a response to the recent depegging of MAI. The proposed changes included setting supply caps at the current supply in each deployment, setting borrow cap at the current borrow in each deployment, and setting Debt Ceiling at 2*(Liquidity within LB range / MAI LT). The proposal also provided specific recommendations for each chain, with a particular note that the recommendations for Polygon would effectively disable further usage of MAI as collateral¹.

The proposal was met with support from several community members, including MarcZeller, WintermuteGovernance, and Benjamin918. Benjamin918 further added that liquidations related to MAI loans on Aave have been executed without any issues ^2,3,4.

In the latter part of the discussion, ChaosLabs announced the creation of a Snapshot for community voting on the Avalanche updates. They also mentioned that an AIP for updates on Optimism, Arbitrum, and Polygon would be posted soon⁵. This was followed by the confirmation that AIP-279 has been published and that voting would commence in 24 hours⁶. This marks a significant step towards the implementation of the proposed changes, pending the outcome of the community vote.