Caps Risk Oracle Activation on Base, Avalanche
01Summary
Enable the automated Aave Generalised Risk Stewards (AGRS) system on Base and Avalanche to dynamically manage supply and borrow caps, mirroring the successful pilot on Arbitrum since February 2025. The system allows up to 30% cap changes every 3 days with permissionless propagation of risk recommendations through middleware contracts.
- Type
- protocol addition
Key changes
- Deploy EdgeRiskStewardCaps contract on Base and Avalanche to receive cap recommendations from off-chain Edge Risk Oracle infrastructure(high)
- Deploy AaveStewardInjectorCaps middleware contract on Base and Avalanche to propagate recommendations while enforcing whitelisted assets and percentage constraints(high)
- Deploy RiskOracle contract on Base and Avalanche to submit supply and borrow cap recommendations(high)
- Grant RISK_ADMIN role to new AGRS contracts on Base and Avalanche(high)
- Automate all currently listed assets on Base and Avalanche except rsETH and ezETH on Base(medium)
- Set maximum cap change constraint at 30% increase/decrease per 3-day period on both networks(medium)
- Integrate AaveStewardCapsInjector with Chainlink Automation consuming LINK from Aave Collector(medium)
Notable concerns
- rsETH and ezETH on Base excluded from automation due to ad-hoc cap dynamics
- Permissionless propagation of recommendations requires assumption that Edge Risk Oracle submissions are timed correctly
- System depends on Chainlink Automation infrastructure and LINK availability from Aave Collector
Generated by Kvorum
02Description
Simple Summary
Following the successful operation of the cap risk stewards (AGRS) on Aave v3 Arbitrum since end of February, this proposal enables exactly the same constraint system on Base and Avalanche.
Motivation
Proposal 253 approved by governance and executed February 25th enabled an automated AGRS (Aave Generalised Risk Stewards) system to allow modification of supply and borrow caps in Aave v3 Arbitrum as pilot, in order to make caps maintenance more efficient, reducing the overall overhead of updating them via manual stewards or governance proposals, while having a more dynamic system reducing the delta between caps and supplies/borrowings.
Since then, the system has been working flawlessly on Arbitrum, with 55 caps updates. So following the plan it is reasonable to continue optimizing by introducing the same on other networks, more precisely Base and Avalanche.
Specification
This new Base and Avalanche instances of AGRS will mirror exactly the same infrastructure as the currently active on Arbitrum, but a summary of specifications is the following:
- The AGRS will only have two configurable parameters: supply and borrow caps.
- Recommendation of these parameters will be submitted to a RiskOracle smart contract, from the Edge off-chain infrastructure.
- Between the risk oracle smart contract and the AGRS contract, there will be a thin middleware AaveStewardCapsInjector, with the following logic:
- Takes recommendations from the Edge Risk Oracle side and propagate them to the AGRS contract.
- Enforce that only the whitelisted assets can be acted upon.
- Given the protections (percentage constraints and time delay) on the AGRS side and that it is an assumption that risk recommendations will be timed correctly on the Edge Risk Oracle side, the propagation will be permissionless.
- The AaveStewardCapsInjector will be part of the Aave Robot infrastructure, running on Chainlink Automation and consuming LINK from the Aave Collector on each network.
- The new AGRS contract will be given RISK_ADMIN role.
- All currently listed assets on Base and Arbitrum will be automated, aside from rsETH and ezETH on Base, as those have pretty ad-hoc caps dynamics.
- Constraints on both Base and Avalanche will be the same as on the system currently live on Arbitrum: maximum 30% increase/decrease each 3 days
- The off-chain caps methodology description can be found on the Aave governance forum here
Base
| Contract | Address |
|---|---|
| EdgeRiskStewardCaps | 0xB892202d9Ce2C16C565A492a5168689b215Eb269 |
| AaveStewardInjectorCaps | 0x4f84A364B66Eb6280350da011829a6BD02B4712f |
| RiskOracle | 0x239d3Bc5fa247337287cb03f53B8bc63DBBc332D |
Avalanche
| Contract | Address |
|---|---|
| EdgeRiskStewardCaps | 0x57218F3aB422A39115951c3Eb06881a7A719DfdD |
| AaveStewardInjectorCaps | 0x54714FAc85b0bf627288CC3a186dE81A42f1D635 |
| RiskOracle | 0x1273f29204fC102bD4620485B13cFE27a794fF32 |
References
- Implementation: AaveV3Avalanche, AaveV3Base
- Tests: AaveV3Avalanche, AaveV3Base
- Code Diffs: Base-Arbitrum-AaveStewardInjectorCaps, Avalanche-Arbitrum-AaveStewardInjectorCaps, Base-Arbitrum-EdgeRiskStewardCaps, Avalanche-Arbitrum-EdgeRiskStewardCaps
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
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04Actions
This proposal carries no on-chain actions.
05Tally
Summed from votes
06Voters
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07Forum
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