[SIP-1] Adjusting Parameters: Increasing Borrow Caps and Setting Supply Caps of Existing Markets

Background: Seamless has grown to be a top TVL and user project on Base. The supply of liquid assets on the platform, such as major assets like ETH and USDbC, has grown significantly in this time to account for nearly 25% of total TVL on Base chain.

With this growth, the borrowing on the platform has long been at maximum capacity and unable to grow more due to the genesis borrow caps.

Though these borrow caps serve their purpose (conservative approach for safe liquidations, overall safety of the platform), Seamless appears to be ready for its next phase of growth and for an adjustment of the borrow caps.

Proposal: With several months of operating history, the addition of Chaos Labs to the community (+ their risk monitoring expertise) and the growing robustness of the liquidator network, it makes sense to re-evaluate and increase the borrow caps across all existing Seamless markets.

Additionally, it is prudent to begin raising the borrow caps to enable more capital efficiency of the platform, and for the newly deposited liquidity to “do work” (generate fees) for the Protocol and enable more growth for the wider Base ecosystem.

The proposal is to set supply and borrow caps parameters to the screenshot below: