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# System prepended metadata

title: '[ARFC] WETH Borrow Cap Increase on Arbitrum V3'

---

# [ARFC] WETH Borrow Cap Increase on Arbitrum V3

## Simple Summary
* Increase WETH Borrow Cap from 40k to 62k.


## Motivation

As seen in [our dashboard](https://risk.gauntlet.xyz/protocols/aave/markets/v3-arbitrum/assets/weth?fullscreen=asset_timeseries_borrow_cap_usage), over the past month, WETH borrow cap usage has gradually increased from 70% to 76% since Feb 1st in Arbitrum v3, with the current cap at 40k WETH (worth $99M).

**WETH Borrow Cap Usage Time Series**
![image](https://hackmd.io/_uploads/BJjngMEja.png)

Per our borrow cap [methodology](https://governance.aave.com/t/gauntlet-methodologies-borrow-and-supply-cap/11487) Gauntlet recommends the increase to 62k WETH. This increase in borrow cap will help to promote further LST recursive strategy usage on Aave. 


## Specification

**Arbitrum Aave V3**

|  Parameter   | Current Value | Recommended Value |
| --- | --- | --- |
| WETH Borrow Cap | 30,000 | 62,000 |



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


## Disclaimer

Gauntlet has not received any compensation from any third-party in exchange for recommending any of the actions contained in this proposal.

*By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos.*



## Copyright
Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).