increase supply cap for cbETH Aave Ethereum V3
01Summary
Proposal to increase the cbETH supply cap on Aave Ethereum v3 Liquidity Pool from its current level to 20,000 cbETH. This is part of the Aave-Chan Initiative's support for liquid staking derivative diversity. The risk parameters were determined through collaboration between Gauntlet and Chaos Labs.
- Type
- parameter change
Key changes
- Increase cbETH supply cap on Aave Ethereum v3 to 20,000 tokens(high)
Notable concerns
- Supply cap is intended to limit risk exposure to cbETH asset
- ACI disclaimer: no financial relationship with Coinbase or other entities
Generated by Kvorum
02Description
Simple Summary
This AIP proposal presents Aave with the opportunity to increase cbETH supply cap on the Ethereum v3 Liquidity Pool.
Motivation
Supporting LSDs diversity is part of the Aave-Chan Initiative (ACI) delegate platform.
The ACI does not have any link nor is paid by Coinbase or any entity to present this AIP.
Supply cap is suggested for this asset to limit risk exposure, the caps have been proposed by a join collaboration between Gauntlet & Chaos Labs.
Specification
Ticker: cbETH
Contract Address: 0xbe9895146f7af43049ca1c1ae358b0541ea49704
| Risk Parameter | Value |
|---|---|
| Supply Cap | 20K |
contract AaveV3EthCbETHCapsPayload is IProposalGenericExecutor {
address public constant CBETH = AaveV3EthereumAssets.cbETH_UNDERLYING;
uint256 public constant CBETH_SUPPLY_CAP = 20_000;
function execute() external {
IPoolConfigurator configurator = AaveV3Ethereum.POOL_CONFIGURATOR;
configurator.setSupplyCap(CBETH, CBETH_SUPPLY_CAP);
}
}
References
A list of relevant links like for this proposal e.g.
Security Considerations
The proposal Payload was reviewed by Bored Ghost Developing.
Deployed Contracts
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal is a standard single-action Aave governance payload execution. The description clearly states the intent (raise cbETH supply cap to 20K on Ethereum v3) and provides the exact payload source code showing configurator.setSupplyCap(CBETH, 20_000). The decoded on-chain action is a single call to execute() on the exact same deployed payload address referenced in the 'Deployed Contracts' section of the description. Because Aave governance payloads are typically delegatecalled with hardcoded constants (no calldata parameters), the decoded_arguments being empty is expected and not a red flag — the actual parameter (20,000 supply cap for cbETH) is embedded in the payload bytecode, matching the disclosed source code exactly. Target address, function name, and value (0 wei) all align with the description. No numeric mismatches, no extra or missing actions, and no target mismatches were found. This is a routine, well-documented risk-parameter update consistent with typical Aave ACI proposals reviewed by BGD Labs.finalized decision. Overall assessment: consistent, confidence: high. (End of reasoning)
Generated by Kvorum
04Actions
- Target
- 0x4e37…9801
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 320x329c…3ed4 | For | 220.8K | 38.85% | — | 4y ago |
| 070x0703…961b | For | 106.9K | 18.81% | — | 4y ago |
| 620x62a4…816a | For | 81.2K | 14.29% | — | 4y ago |
| B80xb83b…cf5c | For | 80.2K | 14.11% | — | 4y ago |
| B90xb933…8dd1 | For | 41.7K | 7.33% | — | 4y ago |
| 7A0x7ae1…e585 | For | 26.7K | 4.69% | — | 4y ago |
| EA0xea17…6676 | For | 10.6K | 1.86% | — | 4y ago |
| 5F0x5fa0…cfa8 | For | 201 | 0.04% | — | 4y ago |
| FC0xfc69…1ac2 | For | 30.5 | 0.01% | — | 4y ago |
| 250x25a6…b402 | For | 20.3 | 0.00% | — | 4y ago |
| A00xa0ef…2d56 | For | 8.3 | 0.00% | — | 4y ago |
| AB0xab2b…c539 | For | 7.7 | 0.00% | — | 4y ago |
| CE0xcea1…6a93 | For | 3.6 | 0.00% | — | 4y ago |
| 680x68ab…c839 | For | 1.2 | 0.00% | — | 4y ago |
| D00xd071…e08a | For | 1.2 | 0.00% | — | 4y ago |
| 820x8220…af0f | For | 1.2 | 0.00% | — | 4y ago |
| 8B0x8bc8…7276 | For | 1.2 | 0.00% | — | 4y ago |
| BF0xbfca…7a35 | For | 1.1 | 0.00% | — | 4y ago |
| 0D0x0dc1…18f5 | For | 1.1 | 0.00% | — | 4y ago |
| 2B0x2ba0…8412 | For | 1.1 | 0.00% | — | 4y ago |
| C70xc724…b01d | For | 1 | 0.00% | — | 4y ago |
| 7E0x7e83…ed7f | For | 1 | 0.00% | — | 4y ago |
| B50xb5b0…3f97 | For | 1 | 0.00% | — | 4y ago |
| 5E0x5e87…a9a4 | For | 1 | 0.00% | — | 4y ago |
| 790x79cb…49d7 | For | 1 | 0.00% | — | 4y ago |
| 0E0x0e46…b600 | For | 1 | 0.00% | — | 4y ago |
| 610x614d…859f | For | 1 | 0.00% | — | 4y ago |
| 240x24b3…4e52 | For | 1 | 0.00% | — | 4y ago |
| D70xd7ee…b96e | For | 1 | 0.00% | — | 4y ago |
| DB0xdb09…df68 | For | 1 | 0.00% | — | 4y ago |
| F60xf614…a116 | For | 0.8 | 0.00% | — | 4y ago |
| 680x6830…8ed6 | For | 0.4 | 0.00% | — | 4y ago |
| 540x5430…8429 | For | 0.4 | 0.00% | — | 4y ago |
| 150x1571…15f2 | For | 0.2 | 0.00% | — | 4y ago |
| 600x607e…515d | For | 0.2 | 0.00% | — | 4y ago |
| FF0xffc2…d86f | For | 0.2 | 0.00% | — | 4y ago |
| 7D0x7d2e…6f47 | For | 0.2 | 0.00% | — | 4y ago |
| 550x5584…7721 | For | 0.2 | 0.00% | — | 4y ago |
| 250x25f9…da12 | For | 0.2 | 0.00% | — | 4y ago |
| F60xf617…c9ed | For | 0.1 | 0.00% | — | 4y ago |
| 460x4679…a8e5 | For | 0.1 | 0.00% | — | 4y ago |
| D30xd34e…0497 | For | 0.1 | 0.00% | — | 4y ago |
| BD0xbdbc…5dfe | For | 0 | 0.00% | — | 4y ago |
| AB0xabf4…5e23 | For | 0 | 0.00% | — | 4y ago |
07Forum
- [ARFC] increase supply cap for cbETH Aave Ethereum V3 ↗discourse · high confidence
Arguments for
- cbETH is near/at its supply cap, indicating strong market demand that an increase would accommodate, allowing new and existing users to grow positions.— MarcZeller
- Chaos Labs' market risk methodology supports raising the supply cap to 20k with no change to the borrow cap.— ChaosLabs
- Gauntlet's modeling shows cbETH would need roughly a 25% price deviation before debt becomes insolvent, supporting a 20k cap.— Pauljlei
- LSDs like cbETH are strategic assets for Aave V3 (especially for future emode), and the proposed cap balances conservatism with allowing growth so Aave doesn't lose demand to other protocols.— MarcZeller
- Regulatory/depeg risk from a potential SEC action against Coinbase is considered low and manageable, comparable to the BUSD precedent, with the ACI ready to support freezing the reserve if needed.— MarcZeller
Arguments against
- If emode is enabled for cbETH before the new cap is reached, the asset's risk profile could change, so a more conservative community might prefer a smaller increase (e.g., to 15k) rather than the full 20k.— Pauljlei
- Given uncertainty over the Shanghai upgrade timing and unclear regulatory status of Coinbase's products, it might be prudent to delay the cap increase until there is more clarity.— lbsblockchain
Unresolved concerns
- Uncertainty remains about whether and when the Shanghai upgrade will occur and how that affects withdrawal queue length and depeg risk, despite MarcZeller's optimistic projection.— lbsblockchain
- The interaction between a future cbETH emode addition and the current supply cap's risk profile has not been fully resolved and is deferred to a later proposal.— Pauljlei, MarcZeller
- The regulatory risk of a potential SEC action against Coinbase impacting cbETH's peg is acknowledged but not formally mitigated beyond informal assurances.— lbsblockchain, MarcZeller
Notable participants
- MarcZellerProposer from Aave Chan Initiative who authored the ARFC and responded to community questions defending the cap increase and regulatory risk assessment.
- ChaosLabsRisk service provider that reviewed the proposal and endorsed the 20k supply cap based on market risk methodology.
- PauljleiGauntlet representative who provided risk modeling supporting the cap increase while flagging a caution about future emode interactions.
- lbsblockchainCommunity member who raised critical questions about depeg risk, regulatory uncertainty, and the Shanghai upgrade timing.
Generated by Kvorum
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