Supply and Borrow Caps Update - LUSD - v3 Ethereum
01Summary
Proposal to increase LUSD supply cap from 3M to 6M and borrow cap from 1.2M to 2.4M on Aave V3 Ethereum in response to recent demand increases following stablecoin de-peg events.
- Type
- parameter change
Key changes
- Increase LUSD supply cap from 3M to 6M (100% increase)(high)
- Increase LUSD borrow cap from 1.2M to 2.4M (100% increase)(high)
Notable concerns
- LUSD recently de-pegged along with other stablecoins, which prompted this cap increase
- LUSD is currently at 96% of existing supply cap and 89% of existing borrow cap
Generated by Kvorum
02Description
Summary
A proposal to increase the LUSD supply cap to 6M and the borrow cap to 2.4M.
Motivation
LUSD is currently at ~96% of its supply cap and ~89% of its borrow cap on Aave V3 Ethereum. This increase in supply and borrow has happened over the past few days following the de-peg events of several stablecoins, including LUSD.
Given the on-chain liquidity levels, current conservative caps set, and the fact that LUSD is a non-collateral asset, we recommend doubling the supply and borrow cap.
The proposal represents a 100% increase from the current caps, making this ARFC compliant with the “direct-to-AIP” framework.
Specification
Ticker: LUSD (LUSD)
Contract Address: 0x5f98805A4E8be255a32880FDeC7F6728C6568bA0
| Parameter | Current | Proposed |
|---|---|---|
| Supply Cap | 3M | 6M |
| Borrow Cap | 1.2M | 2.4M |
References
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal follows the standard Aave governance execution pattern: a single on-chain action that calls execute() on a payload contract address, which internally (via delegatecall) performs the actual protocol parameter changes described in the payload's Solidity source (linked in the proposal as AaveV3EthLusdCapsPayload-Mar15.sol). The decoded calldata does not expose the internal setSupplyCap/setBorrowCap calls directly since they occur inside the payload contract's bytecode, not as separate top-level actions. This is expected and consistent with how Aave proposals are structured, and the description's claims (doubling LUSD supply cap to 6M and borrow cap to 2.4M) align with the typical scope of such a payload. There is no evidence of a target mismatch, extra unclaimed actions, or omitted significant actions in the single decoded call - it is the expected boilerplate execution wrapper. Confidence is medium rather than high because the specific numeric cap values cannot be independently verified from the decoded calldata alone (they are embedded in the payload contract's bytecode/immutable state), but the overall structure and single-action pattern are fully consistent with the proposal's stated intent and typical practice for this contract type.
Generated by Kvorum
04Actions
- Target
- 0x6564…f3d5
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 320x329c…3ed4 | For | 225.5K | 40.00% | — | 4y ago |
| 070x0703…961b | For | 107.3K | 19.03% | — | 4y ago |
| 620x62a4…816a | For | 81.6K | 14.47% | — | 4y ago |
| B80xb83b…cf5c | For | 80.2K | 14.22% | — | 4y ago |
| B90xb933…8dd1 | For | 41.7K | 7.39% | — | 4y ago |
| 160x1664…36d9 | For | 16.9K | 3.00% | — | 4y ago |
| EA0xea17…6676 | For | 10.6K | 1.88% | — | 4y ago |
| 210x2155…59aa | For | 9.2 | 0.00% | — | 4y ago |
| A00xa0ef…2d56 | For | 8.3 | 0.00% | — | 4y ago |
| 270x277d…7b07 | For | 1.9 | 0.00% | — | 4y ago |
| 700x705d…f7b7 | For | 1.2 | 0.00% | — | 4y ago |
| 860x8679…2c0f | For | 1.2 | 0.00% | — | 4y ago |
| 8B0x8bc8…7276 | For | 1.2 | 0.00% | — | 4y ago |
| C70xc724…b01d | For | 1 | 0.00% | — | 4y ago |
| 050x0527…8469 | For | 1 | 0.00% | — | 4y ago |
| 7E0x7eaf…3555 | For | 0.9 | 0.00% | — | 4y ago |
| F60xf614…a116 | For | 0.8 | 0.00% | — | 4y ago |
| E40xe459…e666 | For | 0.5 | 0.00% | — | 4y ago |
| 240x242d…7e1f | For | 0.3 | 0.00% | — | 4y ago |
| 5B0x5bce…86cb | For | 0.2 | 0.00% | — | 4y ago |
| FA0xfa03…5a34 | For | 0.2 | 0.00% | — | 4y ago |
| 210x213d…f12b | For | 0.2 | 0.00% | — | 4y ago |
| 030x03ba…a1a1 | For | 0.1 | 0.00% | — | 4y ago |
| 250x2532…9b9d | For | 0.1 | 0.00% | — | 4y ago |
| DE0xdea1…6923 | Against | 0.1 | 0.00% | — | 4y ago |
| F00xf0ae…6cfc | For | 0.1 | 0.00% | — | 4y ago |
| E70xe7cf…217b | For | 0.1 | 0.00% | — | 4y ago |
| C70xc790…5678 | For | 0 | 0.00% | — | 4y ago |
| 750x7515…07a1 | For | 0 | 0.00% | — | 4y ago |
| 4F0x4fb3…5eb7 | For | 0 | 0.00% | — | 4y ago |
| 840x845a…77e1 | For | 0 | 0.00% | — | 4y ago |
07Forum
No forum thread is confidently linked to this proposal.
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