# Increase Polygon wstETH Supply Cap
AI summary
This proposal aims to increase the supply cap for wrapped liquid staked Ether (wstETH) on the Polygon network within the Aave V3 protocol. The current supply cap for wstETH is 3,450 units, and the proposal suggests raising it to 4,370 units. This adjustment is motivated by the high demand for depositing wstETH, which has reached its current limit, preventing new users from supplying this asset.
If passed, more users will be able to deposit wstETH on Aave V3 Polygon, potentially increasing the total value locked (TVL) in the protocol and generating more fees. Existing users will also be able to expand their positions. There are no direct financial losses for any specific group, but the increased supply could subtly alter market dynamics for wstETH on Aave.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Increase Polygon wstETH Supply Cap
title: "Increase Polygon wstETH Supply Cap" author: "Alice Rozengarden (@Rozengarden - Aave-chan initiative)" discussions: "https://governance.aave.com/t/arfc-increase-supply-and-borrow-caps-at-100-utilization-december-2023/15754"
Simple Summary
This AIP proposes to increase supply caps on assets that currently have 100% or close to 100% utilization.
Motivation
The AIP proposes increasing supply caps to meet the ongoing market demand for depositing. This increase will enable new Aave users to join Aave V3 on Polygon and allow existing us…