Overview
A proposal to increase USDC’s supply and borrow caps.
The recommendations below were made after analyzing user positions for each asset, utilizing Chaos’ supply and borrow cap methodologies.
Analysis
The borrow cap for USDC on Base is currently at 80% utilization.
All of the largest USDC suppliers are either looping the asset with itself or not borrowing against it, putting these positions at low risk of liquidation; the same is true of top borrowers.
Given user behavior and on-chain liquidity, we recommend increasing the supply and borrow caps.
Specification
| Asset | Current Supply Cap | Rec. Supply Cap | Current Borrow Cap | Rec. Borrow Cap |
|---|---|---|---|---|
| USDC | 48,000,000 | 60,000,000 | 36,000,000 | 54,000,000 |