KVORUM
aaveSource: Aave governance v3 · #51

Set Price Cap Adapters (CAPO)

executedMar 16, 2024, 08:46 PM UTCbyF70xf71f…1e02

01Summary

AISummary by Kvorumclaude-haiku-4-5

Activate the Correlated Asset Price Oracle (CAPO) system across 10 Aave networks to add upside protection for Liquid Staking Tokens (LSTs) and fiat-pegged stablecoins by capping their prices relative to their underlying assets using dynamically calculated parameters and fixed price caps.

Type
protocol addition

Key changes

  • Activate CAPO price adapter system for LSTs (wstETH, rETH, cbETH, MaticX, stMATIC, sAVAX) with growth caps ranging from 8.12% to 10.45% and snapshot delays of 7-14 days(high)
  • Activate CAPO price adapter system for fiat-pegged stablecoins (USDC, USDT, DAI, FRAX, LUSD, etc.) with fixed price caps of 4% except LUSD at 10%(high)
  • Update price oracle feeds across 10 networks (Mainnet, Arbitrum, Avalanche, Optimism, Polygon, Gnosis, Base, Metis, BNB, Scroll) using the Config Engine priceFeedsUpdates() method(high)
  • Exclude sDAI from activation due to recent instability in its growth rate(medium)

Notable concerns

  • sDAI excluded from implementation due to recent growth rate instability
  • Retrospective testing showed price was not capped over the last half year, indicating parameters may be conservative
  • System depends on accurate ratio calculations and snapshot delay mechanisms to function as intended
ContractsAaveV3EthereumAaveV3PolygonAaveV3AvalancheAaveV3ArbitrumAaveV3OptimismAaveV3MetisAaveV3BaseAaveV3GnosisAaveV3BNBAaveV3Scroll
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
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02Description

478 words

Simple Summary

This proposal activates the correlated-assets price oracle (CAPO) system for LSTs and fiat-pegged stable coins.

Motivation

LSTs (Liquid Staking Tokens) are highly correlated to an underlying, with an additional growth component on top of it, and sometimes, slashing dynamics. CAPO for this use case adds an upper side protection. Every time the price adapter is queried, it will get the current ratio of the asset/underlying and compared it with a dynamically calculated upper value of that ratio, using the previously defined parameters. If the current ratio is above the ratio cap, the ratio cap is returned. If not, the current ratio is.

In some cases, the relation between an underlying asset and its correlated is direct, without any type of continuous growth expected. For example, this is the case of USD-pegged stable coins, where USD is the underlying and let's say USDC is the correlated asset. For this type of assets we'll apply the price adapter with the fixed price cap.

Specification

AssetGrowth percentSnapshot delay
wstETH9.68%7 days
rETH9.3%7 days
cbETH8.12%7 days
MaticX10.2%14 days
stMATIC10.45%14 days
sAVAX10.1%14 days

All stablecoins are capped at 4%, except LUSD, which is capped at 10%.

sDAI is not included at the moment, given the recent un-stability on its growth rate.

Oracles will be updated using priceFeedsUpdates() method of the Config Engine on every network. Below is the list of assets per network to be updated:

NetworkLSTsStables
MainnetwstETH, rETH, cbETHUSDC, USDT, DAI, FRAX, LUSD, crvUSD, pyUSD
ArbitrumwstETH, rETHUSDC, USDC.e, USDT, FRAX, LUSD, MAI
AvalanchesAvaxUSDC, USDT, DAI.e, FRAX, MAI
OptimismwstETH, rETHUSDC, USDC.e, USDT, DAI, LUSD, sUSD, MAI
PolygonwstETH, stMatic, MaticXUSDC, USDC.e, USDT, DAI, MAI
GnosiswstETHUSDC, xDAI
BasewstETH, cbETHUSDC
MetisUSDC, USDT, m.DAI
BNBUSDC, USDT, fdUSD
ScrollwstETHUSDC

Security

  • Audit by Certora
  • A retrospective test was conducted for the last half year with the parameters provided, which showed that the price was not capped, which is expected

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorumlow confidenceclaude-sonnet-5
Consistent

placeholder...## You must respond with valid JSON only.” 」 I will now output final JSON.,

Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
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04Actions

1 total
#0fallback()chain 0x1
Target
0xb209…0d67
Value
0 wei
Function
fallback()
Arguments
{}
Calldata

05Tally

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06Voters

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07Forum

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