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# System prepended metadata

title: Optimism Aave v3 Borrow Cap Recommendation

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## [ARFC] Gauntlet's Borrow Cap Recommendation for Optimism Aave v3

Per Gauntlet's supply and borrow caps [methodology](https://governance.aave.com/t/gauntlet-methodologies-borrow-and-supply-cap/11487), we recommend the following borrow cap increase: 

| Chain | Asset  | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
| ----- | ------ | ------------------ | ---------------------- | ------------------ | ---------------------- |
| Optimism |OP | 10,000,000          | No Change              | 500,000          | 1,000,000              |

## Motivation:
Gauntlet proposes to increase borrow cap for OP on optimism v3 market to address the growing borrowing demand. 

## Specifications
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#### Borrow Cap Usage
![image](https://hackmd.io/_uploads/rkuOzh2va.png)
<sub>[Link](https://risk.gauntlet.xyz/protocols/aave/markets/optimism/assets/op?fullscreen=asset_timeseries_borrow_cap_usage) to chart</sub>

![image](https://hackmd.io/_uploads/rJ57r33Pa.png)



| Asset | Circulating Supply | DEX 25% Slippage | Global Volume ($) | Global 2% Depth ($) | Top 3 Wallet Amt | Top 5 Wallet Amt |
| ----- | ------------------ | ---------------- | ----------------- | ------------------- | ---------------- | ---------------- |
| OP    | 4,294,967,296      | 474,582          | $499,620,680.36   | $20,894,103.76      | 2,389,685,398    | 2,679,984,839    |


## Next Steps
Once we receive feedback from @ChaosLabs on the above recommendations, we will move forward with Risk Steward actions or Governance. 