Supply & Borrow caps
Supply/Borrow Caps
Maker Governance can appoint RISK_ADMIN
and POOL_ADMIN
who have the ability to configure Borrow and Supply Caps of the individual reserves.
Borrow Caps
Allow modulation of how much of each asset can be borrowed, which reduces insolvency risk.
By default borrow cap of an asset is 0, which signifies no cap. Anyone who has been granted RISK_ADMIN
or POOL_ADMIN
role via the ACLManager can call setBorrowCap
method in PoolConfigurator to update the max total borrow (stable + variable) for the given reserve.
In case *Borrow Cap* of the reserve is set lower than the current *totalDebt* the existing borrowers are not effected but no more borrows (stable or variable) can be initiated for that reserve.
Supply Caps
Allow limiting how much of a certain asset is supplied to SparkLend. This helps reducing exposure to a certain asset and mitigate attacks like infinite minting or price oracle manipulation.
By default supply cap of an asset is 0, which signifies no cap. Anyone who has been granted RISK_ADMIN
or POOL_ADMIN
role via the ACLManager can call setSupplyCap
method in PoolConfigurator to update the liquidity supply for the given reserve.
In case Supply Cap of the reserve is set lower than the current liquidity of the reserve, the existing suppliers are not effected but no more liquidity can be supplied to that reserve.
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