According to Foresight News, Chaos Labs has submitted an ARFC proposal to the Aave governance forum aimed at increasing the supply caps for Aave V3. The proposal specifically targets raising the limits for cbBTC on both Ethereum and Base deployments, as well as for AAVE.e on Avalanche.

The rationale behind the proposal is clear: supply cap utilization for cbBTC on Ethereum has hit 100%, prompting a recommendation to raise the cap to 1,200 cbBTC. Similarly, cbBTC on Base has also reached full utilization, with a proposed increase to 800 cbBTC. Additionally, the supply cap for AAVE.e on Avalanche is currently at 92%, leading to a suggestion to elevate the cap to 7,200 AAVE.e. This initiative seeks to enhance liquidity and support user demand across the platform.