Supply Cap increase - wstETH
01Summary
Proposal to increase wstETH supply caps on Arbitrum V3 (30k→45k), Optimism V3 (23k→34.5k), and Polygon V3 (2.7k→3.45k) to address high utilization rates and enable greater TVL and protocol revenue.
- Type
- parameter change
Key changes
- Increase wstETH supply cap on Arbitrum V3 from 30k to 45k (50% increase)(high)
- Increase wstETH supply cap on Optimism V3 from 23k to 34.5k (50% increase)(high)
- Increase wstETH supply cap on Polygon V3 from 2.7k to 3.45k (~28% increase)(medium)
Notable concerns
- Optimism V3 and Polygon V3 caps would reach 75% of total supply threshold after increase
- Current utilization rates are high (77% Arbitrum, 90% Optimism, 100% Polygon) indicating strong demand
Generated by Kvorum
02Description
Simple Summary
This proposal seeks to increase the supply cap for the wstETH token on the following markets:
- Arbitrum V3
- Polygon V3
- Optimism V3
This proposal is compatible with the Direct-to-AIP framework.
Motivation
On the Arbitrum V3, Optimism V3, and Polygon V3 markets, the utilization of the supply cap reached 77%, 90%, and 100% respectively. Augmenting those caps would allow for a higher TVL resulting in a better experience for the user of Aave and the ecosystem built around the LSD yield leveraging. This would also increase protocol revenue via more borrowing of WETH on those diverse platforms.
Along with the utilization of the supply cap, the Total supply of this asset increased as well, which would allow the increase of those caps without compromising on the 75% of the total supply threshold.
Specification
The following parameters would be modified for the wstETH token:
| Token | Current supply cap | Proposed supply cap | Increase | Total Supply | Total Supply (%) |
|---|---|---|---|---|---|
| wstETH Arbitrum V3 | 30k | 45k | 50% | 80k | 56.25% |
| wstETH Optimism V3 | 23k | 34.5k | 50% | 46k | 75% |
| wstETH Polygon V3 | 2.7k | 3.45k | ~28% | 4.6k | 75% |
Contract:
- wstETH Arbitrum: 0x5979d7b546e38e414f7e9822514be443a4800529
- wstETH Optimism: 0x1f32b1c2345538c0c6f582fcb022739c4a194ebb
- wstETH Polygon: 0x03b54a6e9a984069379fae1a4fc4dbae93b3bccd
References
- Implementation: Optimism, Arbitrum, Polygon
- Tests: Optimism, Arbitrum, Polygon
- Snapshot: No snapshot for Direct-to-AIP
- Discussion
Disclaimer:
This AIP is powered by Skyward. The author doesn’t possess wstETH tokens at the time of writing and isn’t compensated by LIDO for this ARFC.
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal describes three supply cap increases for wstETH (Arbitrum, Optimism, Polygon V3) and links to three separate implementation payload contracts, one per chain. The decoded calldata contains exactly three actions, each an execute(address) call routed through mainnet cross-chain governance infrastructure (typical Aave BGD Labs 'Direct-to-AIP' cross-chain execution pattern), each targeting a distinct payload address. This 1:1 correspondence between the three described markets and the three decoded actions, along with the use of the standard execute(address) cross-chain trigger pattern referenced in the proposal's 'Implementation' links, is structurally consistent with the description. However, the actual numeric parameters (new supply cap values) are encoded inside the target payload contracts' bytecode and are not visible in the decoded calldata itself (only generic address arguments are shown), so it is not possible to directly verify the exact cap values (45k/34.5k/3.45k) against on-chain state from this data alone. This limits confidence to medium rather than high, but there is no evidence of a mismatch, extra action, or omitted step — the number and target pattern of actions align with what the description promises for three distinct chains. No numeric mismatches, extra actions, or missing steps were identified given the information available.
Generated by Kvorum
04Actions
- Target
- 0x5f5c…6711
- Value
- 0 wei
- Function
- execute(address)
- Arguments
{ "0": "0xf285E2D9c5CdAab11c167ffa70fa4055fbeAed96" }- Calldata
- Target
- 0xd1b3…cfa3
- Value
- 0 wei
- Function
- execute(address)
- Arguments
{ "0": "0x83a67159a0ad5612178Bed9deB43C0F58E941932" }- Calldata
- Target
- 0x158a…d45b
- Value
- 0 wei
- Function
- execute(address)
- Arguments
{ "0": "0xaf6568bD3923e2AD05a0d6e4206f601D08E0Cde2" }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 200x2079…d6ce | For | 139.4K | 0.00% | — | 3y ago |
| 320x329c…3ed4 | For | 95.1K | 0.00% | — | 3y ago |
| B80xb83b…cf5c | For | 82.5K | 0.00% | — | 3y ago |
| B90xb933…8dd1 | For | 44.1K | 0.00% | — | 3y ago |
| 2C0x2cc1…4df1 | For | 28.4K | 0.00% | — | 3y ago |
| E40xe459…e666 | For | 20K | 0.00% | — | 3y ago |
| EA0xea17…6676 | For | 15.4K | 0.00% | — | 3y ago |
| 180x1855…98ba | For | 3K | 0.00% | — | 3y ago |
| DF0xdf06…4977 | For | 27.3 | 0.00% | — | 3y ago |
| 730x7306…c011 | For | 1 | 0.00% | — | 3y ago |
| 340x3465…5073 | For | 1 | 0.00% | — | 3y ago |
| 0C0x0c9f…408b | For | 1 | 0.00% | — | 3y ago |
| 6C0x6cc8…903c | For | 1 | 0.00% | — | 3y ago |
| 340x3496…126b | For | 0.1 | 0.00% | — | 3y ago |
| 500x50d2…5318 | For | 0.1 | 0.00% | — | 3y ago |
| 440x44c1…78fe | For | 0.1 | 0.00% | — | 3y ago |
07Forum
No forum thread is confidently linked to this proposal.
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