[ARFC] Supply Cap increase - wstETH

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The discussion focused on Alice's proposal to raise the wstETH token supply cap on Arbitrum V3, Polygon V3, and Optimism V3 due to high utilization and asset supply increase. While there was consensus on the need for a cap increase, the exact amount and implementation process were debated, emphasizing risk consideration and community consensus.

The discussion primarily revolved around the proposal by Alice to increase the supply cap for the wstETH token on Arbitrum V3, Polygon V3, and Optimism V3 markets. This proposal was motivated by the high utilization of the supply cap on these markets and the increase in the total supply of the asset. The proposed increases were 50% for Arbitrum V3 and Optimism V3, and approximately 28% for Polygon V31.

ChaosLabs supported the proposal but suggested a more modest increase of 50% to 45K for wstETH on Arbitrum2. In response to this feedback, Alice adjusted the proposed increase for the supply cap of wstETH on Arbitrum to 45K3. However, Gauntlet recommended a further reduction, suggesting a raise to 40k instead of 45k. They also advised that any increases in supply cap beyond 50% circulating supply should wait until the killswitch is implemented. Additionally, they recommended that if the community wants to raise the wstETH supply cap for Optimism and Polygon, it should go through AIP rather than risk steward4.

In conclusion, while there was general agreement on the need to increase the supply cap for wstETH on various markets, the exact amount of increase and the process to implement it were points of contention. The discussion highlighted the need for careful consideration of risk factors and the importance of community consensus in decision-making.

Posted 4 months ago

Last reply 3 months ago

Summary updated 2 months ago

Last updated 09/12 13:52