diff --git a/diffs/pre_arbitrum_caps_increase_20240112_post_arbitrum_caps_increase_20240112.md b/diffs/pre_arbitrum_caps_increase_20240112_post_arbitrum_caps_increase_20240112.md
new file mode 100644
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+++ b/diffs/pre_arbitrum_caps_increase_20240112_post_arbitrum_caps_increase_20240112.md
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+## Reserve changes
+
+### Reserve altered
+
+#### ARB ([0x912CE59144191C1204E64559FE8253a0e49E6548](https://arbiscan.io/address/0x912CE59144191C1204E64559FE8253a0e49E6548))
+
+| description | value before | value after |
+| --- | --- | --- |
+| supplyCap | 20,000,000 ARB | 40,000,000 ARB |
+
+
+#### USDC ([0xaf88d065e77c8cC2239327C5EDb3A432268e5831](https://arbiscan.io/address/0xaf88d065e77c8cC2239327C5EDb3A432268e5831))
+
+| description | value before | value after |
+| --- | --- | --- |
+| supplyCap | 64,000,000 USDC | 128,000,000 USDC |
+| borrowCap | 60,000,000 USDC | 120,000,000 USDC |
+
+
+## Raw diff
+
+```json
+{
+  "reserves": {
+    "0x912CE59144191C1204E64559FE8253a0e49E6548": {
+      "supplyCap": {
+        "from": 20000000,
+        "to": 40000000
+      }
+    },
+    "0xaf88d065e77c8cC2239327C5EDb3A432268e5831": {
+      "borrowCap": {
+        "from": 60000000,
+        "to": 120000000
+      },
+      "supplyCap": {
+        "from": 64000000,
+        "to": 128000000
+      }
+    }
+  }
+}
+```
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diff --git a/src/ArbitrumCapsIncrease_20240112.s.sol b/src/ArbitrumCapsIncrease_20240112.s.sol
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+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.0;
+
+import {AaveV3ArbitrumAssets} from 'aave-address-book/AaveV3Arbitrum.sol';
+import {IAaveV3ConfigEngine} from 'aave-helpers/v3-config-engine/IAaveV3ConfigEngine.sol';
+import {EngineFlags} from 'aave-helpers/v3-config-engine/EngineFlags.sol';
+import {CapsPlusRiskStewardArbitrum} from '../scripts/CapsPlusRiskStewardArbitrum.s.sol';
+
+/**
+ * @title Update Caps on Arbitrum V3
+ * @author @ChaosLabsInc
+ * - Discussion: https://governance.aave.com/t/arfc-chaos-labs-risk-stewards-increase-supply-and-borrow-caps-on-v3-arbitrum-01-11-2024/16148
+ */
+contract ArbitrumCapsIncrease_20240112 is CapsPlusRiskStewardArbitrum {
+  /**
+   * @return string name identifier used for the diff
+   */
+  function name() internal pure override returns (string memory) {
+    return 'arbitrum_caps_increase_20240112';
+  }
+
+  /**
+   * @return IAaveV3ConfigEngine.CapsUpdate[] capUpdates to be performed
+   */
+  function capsUpdates() internal pure override returns (IAaveV3ConfigEngine.CapsUpdate[] memory) {
+    IAaveV3ConfigEngine.CapsUpdate[] memory capUpdates = new IAaveV3ConfigEngine.CapsUpdate[](2);
+
+    capUpdates[0] = IAaveV3ConfigEngine.CapsUpdate(
+      AaveV3ArbitrumAssets.USDCn_UNDERLYING,
+      128_000_000,
+      120_000_000
+    );
+
+    capUpdates[1] = IAaveV3ConfigEngine.CapsUpdate(
+      AaveV3ArbitrumAssets.ARB_UNDERLYING,
+      40_000_000,
+      EngineFlags.KEEP_CURRENT
+    );
+
+    return capUpdates;
+  }
+}
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