Supply and Borrow Cap Updates - Aave V3 Avalanche

Simple Summary

A proposal to adjust: Twenty (20) total Supply and Borrow Caps across eleven (11) assets on Aave V3 Avalanche

Motivation

The objective of this proposal is to recommend updated supply and borrow caps for:

1. V3 Avalanche stablecoins that have excessive supply caps set and/or have no set borrow cap.
   1. The caps are intended to allow for substantial growth compared to the current supply while not set too excessively.
   2. The recommendations for the supply caps are set to up to 40% of the circulating supply for most assets and no more than 60%. You can find the exact number for each asset in the tables below. Borrow caps are set to ~65% of the supply cap.
2. Assets that have reached over 75% utilization of either cap.
   1. The recommendations provided in this proposal were derived using Chaos Labs’ Updated Supply and Borrow Cap Methodology.
3. Assets with a supply cap that is >50% of the asset's total on-chain circulating supply.