# Supply Cap Reduction Across L2 Comets
AI summary
This proposal aims to reduce the maximum amount of certain cryptocurrencies that can be supplied to Compound's lending markets, specifically on various Layer 2 (L2) networks like Arbitrum, Base, Linea, and Mantle. This adjustment affects cUSDCv3, cUSDC.ev3, cUSDTv3, cWETHv3, and cUSDev3 across these networks. The changes are based on recommendations from Gauntlet, a risk management firm, and have been simulated to ensure market stability.
If this proposal passes, the supply caps for the specified assets on the L2 Comets will be lowered, potentially reducing the total liquidity available for borrowing these assets. This could benefit the protocol by mitigating risk, but might limit the borrowing capacity for users of these specific assets on the affected networks.
Voting results
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Supply Cap Reduction Across L2 Comets
Proposal summary
WOOF! proposes to update supply caps on cUSDCv3, cUSDC.ev3, cUSDTv3 and cWETHv3 on Arbitrum, cUSDCv3 and cWETHv3 on Base, cWETHv3 on Linea and cUSDev3 on Mantle networks. This proposal takes the governance steps recommended and necessary to update a Compound III markets on each network. Simulations have confirmed the market’s readiness, as much as possible, using the Comet scenario suite. The new parameters are based on the [recommendations from Gauntlet](https://www.co…