[ARFC] Aave V3 Caps increase - 2023.08.31

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Alice proposed increasing supply and borrow caps for several assets nearing full utilization across multiple networks. The proposal received mixed feedback, with ChaosLabs supporting some increases but cautioning against others due to liquidity concerns, while Gauntlet supported most increases if the community has an aggressive outlook.

The discussion revolved around the proposal by Alice to increase the supply and borrow caps for various assets across multiple networks that are nearing full utilization, including AAVE on Arbitrum, Metis on Metis, and DPI on Polygon1. The proposal was aimed at preventing a sub-optimal user experience and potential revenue loss if the caps reach 100%.

ChaosLabs and Gauntlet responded to the proposal with their insights. ChaosLabs monitors supply and borrow cap utilization and makes recommendations based on demand, user behavior, and market conditions. They supported increasing the cap for LINK on Arbitrum but believed the current caps for sAVAX, WAVAX (Avalanche), and METIS (Metis) were sufficient. They did not recommend increasing the caps for AAVE (Arbitrum) and DPI (Polygon) due to sparse on-chain liquidity2. On the other hand, Gauntlet supported the proposed increases for AAVE on Arbitrum and DPI on Polygon if the community has an aggressive outlook. They also recommended raising the Metis supply cap to 120k but did not support increasing the supply cap for WAVAX or SAVAX due to liquidity constraints3.

The discussion concluded with Alice updating the main topic to reflect the parameters supported by Gauntlet and expressing gratitude to the risk providers for their feedback4. This discussion provided valuable insights into the supply and borrow caps for various assets and the factors that influence these caps.

Posted 3 months ago

Last reply 3 months ago

Summary updated 2 months ago

Last updated 03/12 08:00