What is this about?

The discussion revolves around a proposal to increase the caps for various assets in the Aave V3 GnosisChain market. This proposal, introduced by MarcZeller¹, is aimed at supporting the market's growth, which has shown promising signs with nearly $20M in liquidity shortly after its launch. The assets considered for cap increases include wstETH, WETH, GNO, sDAI, wxDAI, USDC, and EURe. The community is invited to provide feedback, which will be followed by a snapshot stage and potentially an AIP stage.

How is the community reacting?

The community's reaction includes support and constructive feedback. 0xkeyrock.eth³ expressed support for the cap increase. ChaosLabs² acknowledged the proposal and indicated that they would provide recommendations soon, also mentioning a Risk Steward proposal for an immediate increase of several assets. Gauntlet⁴ provided a detailed response, suggesting a more conservative approach to cap increases, aligning them with cap usage to maintain balance with liquidity and borrow usage changes. They provided specific cap adjustment recommendations, often suggesting lower increases than the original proposal, and emphasized the importance of considering the market's maturity and the collateralization of stable debt by certain assets.

Why this is positive?

• The proposal supports the growth of the Aave V3 GnosisChain market, which has already attracted significant liquidity.
• Increasing caps could potentially lead to more liquidity and activity in the market.
• The community is engaged and providing constructive feedback, indicating a healthy governance process.

Why this is negative?

We have not been able to determine whether this will be negative.

Next actions

The next steps for the proposal include gathering community feedback, proceeding to a snapshot stage, and potentially moving to an AIP stage if the feedback is positive and the community reaches a consensus.