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# System prepended metadata

title: '[ARC] Gauntlet Risk Parameter Updates for Arbitrum and Polygon Aave V3 (2023-03-02)'

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# [ARC] Gauntlet Risk Parameter Updates for Arbitrum and Polygon Aave V3 (2023-03-02)
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## Simple Summary

This analysis follows Gauntlet's market update [here](https://governance.aave.com/t/gauntlet-market-alerts-feb-2023/11622/7?u=pauljlei). We recommend no changes to these caps at this point in time.

| Market      | Asset | Parameter  | Current Parameter | Recommended Parameter |
| ----------- | ----- | ---------- | ----------------- | --------------------- |
| Polygon v3  | GHST  | Supply Cap | 5,876,000         | No Change             |
| Arbitrum v3 | AAVE  | Supply Cap | 2,500             | No Change             |
| Polygon v3  | SUSHI | Supply Cap | 299,320           | No Change               |
| Polygon v3  | SUSHI | Borrow Cap | 102,484           | No Change               |

**Polygon v3**
SUSHI: Given the asset's market cap, we do not recommend increasing supply or borrow cap. 
GHST: we do not recommend increasing supply cap. The aggressive methodology based on global liquidity does not support a borrow and supply cap increase.
**Arbitrum v3**
Aave: we do not recommend increasing supply cap. The aggressive methodology based on global liquidity does not support a borrow and supply cap increase.
## Analysis
![](https://i.imgur.com/azTfFtT.png)

#### GHST on Polygon v3
![](https://i.imgur.com/Exv5KWr.png)

Supply Cap Usage has been flat between 70-80% since Feb 1st. 

#### SUSHI on Polygon v3
![](https://i.imgur.com/LbEoo0m.png)

Supply and Borrow Cap usage have trended between 70-80% since Feb 1st. 


#### Aave on Arbitrum
![](https://i.imgur.com/Skhca7U.png)

Aave Supply Cap usage spiked to 98% on Feb 22nd but has since dropped to 80%.




## Next Steps:
* No immediate next steps



