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# System prepended metadata

title: Aave BASE v3 Supply Cap

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## [ARFC] Gauntlet's Supply Cap Recommendation for BASE 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 supply cap increase: 

| Chain | Asset  | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
| ----- | ------ | ------------------ | ---------------------- | ------------------ | ---------------------- |
| BASE |cbETH | 2,000          | 3,000              | 200         | No Change              |

## Motivation:
Gauntlet proposes to increase supply cap for cbETH on BASE v3 market to address the growing supply demand for this strategic LST asset. 

## Specifications
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#### Supply Cap Usage
![image](https://hackmd.io/_uploads/SkFTqhVYp.png)

<sub>[Link](https://risk.gauntlet.xyz/protocols/aave/markets/v3-base/assets/cbeth?fullscreen=asset_timeseries_supply_cap_usage) to chart</sub>

#### cbETH Top Suppliers
![image](https://hackmd.io/_uploads/BJVehh4Fa.png)

The top 3 suppliers of cbETH on Base v3 market are utilizing the asset to borrow WETH.


| Asset | Circulating Supply | DEX 25% Slippage | Global Volume ($) | 
| ----- | ------------------ | ---------------- | ----------------- |
| cbETH    | 19,623      | 949          | $2,892,473 


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