Chaos Labs - Increase wstETH Supply Cap on V3 Arbitrum
01Summary
Proposal to increase the wstETH supply cap on Aave V3 Arbitrum from 18,750 to 30,000 units. Stress testing shows potential protocol losses of ~$500K in extreme depeg scenarios (up to 15%), though this is considered unlikely given recent Oracle configuration updates.
- Type
- parameter change
Key changes
- Increase wstETH supply cap on V3 Arbitrum from 18,750 to 30,000(high)
- wstETH borrow cap remains unchanged at 800(low)
Notable concerns
- Stress testing indicates potential protocol losses of ~$500K in extreme depeg scenarios (up to 15%), though this scenario is considered unlikely given recent Oracle configuration updates
- Current supply cap is at 100% utilization, indicating strong demand pressure
Generated by Kvorum
02Description
Summary
A proposal to increase the Supply cap for wstETH on V3 Arbitrum.
Motivation
The supply and borrow cap for wstETH on V3 Arbitrum is currently at 100% utilization. Utilizing our supply cap methodology, we conducted stress tests simulating depeg scenarios (up to 15%). Given an increase of the supply cap to 30K, such a depeg scenario materializing could lead to protocol losses of ~$500K. This is an extreme scenario, given the Oracle configuration update introduced here.
Specification
Ticker: wstETH (wstETH)
Contract Address: 0x5979D7b546E38E414F7E9822514be443A4800529
| Chain | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Arbitrum | wstETH | 18,750 | 30,000 | 800 | No Change |
References
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal follows the standard Aave/BGD Labs governance pattern: a single top-level action that calls execute(address) on a cross-chain governance executor, passing the address of a dedicated payload contract. The description links directly to this payload contract's source code and test file, which is consistent with how Aave proposals are structured — the actual cap-setting logic (setSupplyCap for wstETH) lives inside the payload contract rather than being directly decoded in the top-level calldata. Because the decoded action only reveals the payload address and not its internal calldata, I cannot independently verify the exact numeric cap change (18,750 → 30,000) from the provided data alone. However, this is expected and routine for this proposal type, not a sign of manipulation — the payload address matches the referenced GitHub source, and no other action is present that could indicate additional undisclosed effects (e.g., fund transfers, role grants). Given the structural match and lack of any contradictory or suspicious elements, I assess the proposal as consistent, with medium confidence due to the inability to directly verify the embedded numeric parameters from the decoded calldata alone.'
Generated by Kvorum
04Actions
- Target
- 0xd1b3…cfa3
- Value
- 0 wei
- Function
- execute(address)
- Arguments
{ "0": "0x134C50556dE1A83Dd947c9460a58d8d60a289CEa" }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 320x329c…3ed4 | For | 239.2K | 48.56% | — | 3y ago |
| 620x62a4…816a | For | 83.2K | 16.90% | — | 3y ago |
| 130x13bd…8548 | For | 82.2K | 16.69% | — | 3y ago |
| 850x8556…ab0b | For | 69K | 14.00% | — | 3y ago |
| EA0xea17…6676 | For | 15.3K | 3.10% | — | 3y ago |
| 180x1855…98ba | For | 3K | 0.61% | — | 3y ago |
| A00xa06c…61f7 | For | 604.6 | 0.12% | — | 3y ago |
| A00xa0ef…2d56 | For | 8.3 | 0.00% | — | 3y ago |
| B90xb933…8dd1 | For | 4.2 | 0.00% | — | 3y ago |
| A40xa42b…8240 | For | 2.1 | 0.00% | — | 3y ago |
| 2E0x2ea5…d78a | For | 0.2 | 0.00% | — | 3y ago |
| 6B0x6b0a…43a3 | For | 0.2 | 0.00% | — | 3y ago |
| 6B0x6b05…ace8 | For | 0.1 | 0.00% | — | 3y ago |
| F60xf6f4…91b8 | For | 0 | 0.00% | — | 3y ago |
| 6D0x6d46…2485 | For | 0 | 0.00% | — | 3y ago |
| 340x3486…e8de | For | 0 | 0.00% | — | 3y ago |
| 6E0x6edc…5ded | For | 0 | 0.00% | — | 3y ago |
07Forum
No forum thread is confidently linked to this proposal.
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