increase supply cap for cbETH Aave Ethereum V3
01Summary
Increase cbETH supply cap on Aave Ethereum v3 from 20,000 to 30,000 units to support liquid staking derivative diversity, as proposed by Aave-Chan Initiative with risk parameters determined by Gauntlet & Chaos Labs.
- Type
- parameter change
Key changes
- Increase cbETH supply cap from 20,000 to 30,000 on Aave Ethereum v3 Liquidity Pool(medium)
Notable concerns
- The proposal action decoding shows a fallback function call rather than a clear execute() signature, which may indicate a proxy pattern that warrants verification
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 | Current Value | Proposed Value |
|---|---|---|
| Supply Cap | 20K | 30K |
contract AaveV3EthCbETHCapsPayload is IProposalGenericExecutor {
address public constant CBETH = AaveV3EthereumAssets.cbETH_UNDERLYING;
uint256 public constant CBETH_SUPPLY_CAP = 30_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.
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal follows the standard Aave governance payload pattern: a single on-chain action invoking execute() on a payload contract address, with the actual logic (setSupplyCap for cbETH to 30,000) defined in the linked Solidity source rather than decoded as explicit calldata arguments. This is typical for Aave AIPs, where the executor contract's bytecode is verified off-chain via the published source and audit (BGD Labs), and the decoded action list will always show just 'execute()' with no arguments regardless of the underlying logic. The description's claim (raise cbETH supply cap from 20K to 30K) matches exactly the CBETH_SUPPLY_CAP constant (30_000) in the provided contract source. There is no value, target, or omission discrepancy detectable from the available data. Confidence is medium rather than high because the decoded calldata itself does not expose the setSupplyCap call parameters directly — verification relies on trusting the linked source code matches the deployed bytecode, which is standard practice for Aave payloads but not independently confirmable from the JSON alone.
Generated by Kvorum
04Actions
- Target
- 0xb6e5…cc83
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 320x329c…3ed4 | For | 226.4K | 44.73% | — | 4y ago |
| 070x0703…961b | For | 107.3K | 21.20% | — | 4y ago |
| 620x62a4…816a | For | 81.6K | 16.12% | — | 4y ago |
| B80xb83b…cf5c | For | 80.2K | 15.84% | — | 4y ago |
| EA0xea17…6676 | For | 10.6K | 2.09% | — | 4y ago |
| 2D0x2d31…5500 | For | 50 | 0.01% | — | 4y ago |
| C60xc64c…45f2 | For | 17 | 0.00% | — | 4y ago |
| A40xa417…a567 | For | 12.4 | 0.00% | — | 4y ago |
| A00xa0ef…2d56 | For | 8.3 | 0.00% | — | 4y ago |
| 8B0x8bc8…7276 | For | 1.2 | 0.00% | — | 4y ago |
| CB0xcbe7…fe98 | For | 0.8 | 0.00% | — | 4y ago |
| E40xe459…e666 | Against | 0.5 | 0.00% | — | 4y ago |
| 2E0x2ec7…64e0 | For | 0.4 | 0.00% | — | 4y ago |
| 7E0x7e72…e9b6 | For | 0.4 | 0.00% | — | 4y ago |
| 770x772e…fd0d | For | 0.4 | 0.00% | — | 4y ago |
| 810x81a7…0575 | For | 0.4 | 0.00% | — | 4y ago |
| 020x0221…fb42 | For | 0.1 | 0.00% | — | 4y ago |
| 250x25f0…0c8c | Against | 0.1 | 0.00% | — | 4y ago |
| 060x06c4…66a2 | For | 0.1 | 0.00% | — | 4y ago |
| F80xf84c…9a63 | For | 0.1 | 0.00% | — | 4y ago |
| 6D0x6d65…5316 | For | 0.1 | 0.00% | — | 4y ago |
| 660x6695…b0bf | For | 0 | 0.00% | — | 4y ago |
07Forum
- [ARFC] Increase supply cap for cbETH Aave Ethereum V3 - 20230317 ↗discourse · high confidence
- [ARFC] increase supply cap for cbETH Aave Ethereum V3 ↗discourse · medium confidence
Arguments for
- cbETH is at ~98% of its supply cap, indicating strong market demand that cannot be accommodated by the current 20k limit.— MarcZeller
- Increasing the cap to 30k will allow new users to join Aave V3 and existing users to increase their position sizes.— MarcZeller
- The Euler exploit has created additional demand for deposits that the current cap prevents from being met.— MarcZeller
- A 50% increase adheres to the direct-to-AIP framework, enabling rapid response to high demand.— MarcZeller
- The 2X supply cap methodology recommends doubling the cap, and 30k represents a prudent increase while observing behavior with the new ETH-correlated emode configuration.— ChaosLabs
Arguments against
None surfaced.
Unresolved concerns
- Risk teams' models may be overly conservative on liquid staking derivative assets, potentially limiting Aave's growth with strategic assets.— MarcZeller
- The effect of including cbETH in ETH-correlated E-mode on the distribution of positions and whether further cap increases will be needed is still being analyzed.— ChaosLabs
Notable participants
- MarcZellerProposer from Aave Chan Initiative who authored and advocated for the cbETH supply cap increase.
- ChaosLabsRisk analysis team that reviewed the proposal, recommended the 30k cap target, and provided ongoing monitoring of the asset's behavior post-implementation.
- ponzinomicCommunity member who inquired about implementation timing.
Generated by Kvorum
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