WAVAX Borrow Cap Update - V3 Avalanche - 04.21.2023

Simple Summary

A proposal to increase the borrow cap of WAVAX on Aave V3 Avalanche:

Motivation

The objective of this proposal is to recommend updated supply and borrow caps for V3 assets that have recently reached over 75% utilization of either cap, and our methodologies allow for an increase of the caps. The recommendations provided in this proposal were derived using Chaos Labs’ Supply and Borrow Cap Methodology.

Below are the data considerations and recommendations:

Avalanche:

WAVAX

We recommend increasing the borrow cap from 1,200,000 to 2,400,000 Our simulations have yielded the following results:

Recommendations

Asset	Current Supply Cap	Recommended Supply Cap	Current Borrow Cap	Recommended Borrow Cap
WAVAX	3,800,000	No Change	1,200,000	2,400,000