Gauntlet Cap Updates for Ethereum, Optimism Aave v3
01Summary
Gauntlet proposes reducing supply caps for BAL (700k to 350k), LINK (24M to 15M) on Ethereum v3, and OP (20M to 10M) on Optimism v3 to mitigate tail risks due to historically low cap usage and declining liquidity.
- Type
- parameter change
Key changes
- Reduce BAL supply cap on Ethereum v3 from 700,000 to 350,000(medium)
- Reduce LINK supply cap on Ethereum v3 from 24,000,000 to 15,000,000(medium)
- Reduce OP supply cap on Optimism v3 from 20,000,000 to 10,000,000(medium)
Notable concerns
- Cap reductions may limit protocol exposure to these assets
- Users with positions near or at the new caps may face reduced borrowing capacity
Generated by Kvorum
02Description
Summary
Gauntlet recommends cap changes on Ethereum v3 and Optimism v3. For more details, see the full forum post here.
Motivation
Cap usages have been historically low and liquidity has declined for several assets - we recommend lowering caps to reduce tail risks. Our dashboard has more color on how caps have continuously evolved over the past few months.
Specification
| Chain | Asset | Cap | Current | Recommended |
|---|---|---|---|---|
| Ethereum | BAL | SUPPLY | 700000 | 350000 |
| Ethereum | LINK | SUPPLY | 24000000 | 15000000 |
| Optimism | OP | SUPPLY | 20000000 | 10000000 |
Implementation
The proposal implements changes on Ethereum v3 and Optimism v3 using the following pre-deployed payloads:
- Ethereum:
0x2ee993533a482fe0f22d0FdF1B84AE1a0537E5ed - Optimism:
0xE1Dd796dBEB5A67CE37CbC52dCD164D0535c901E
Copyright
Copyright and related rights waived via CC0.
By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos. This message is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, nor does it constitute an offer to provide investment advisory or other services by Gauntlet Networks Inc. No reference to any specific security constitutes a recommendation to buy, sell or hold that security or any other security. Nothing in this report shall be considered a solicitation or offer to buy or sell any security, future, option or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this report constitutes investment advice or offers any opinion with respect to the suitability of any security, and the views expressed in this report should not be taken as advice to buy, sell or hold any security. The information in this report should not be relied upon for the purpose of investing. In preparing the information contained in this report, we have not taken into account the investment needs, objectives and financial circumstances of any particular investor. This information has no regard to the specific investment objectives, financial situation and particular needs of any specific recipient of this information and investments discussed may not be suitable for all investors. Any views expressed in this report by us were prepared based upon the information available to us at the time such views were written. Changed or additional information could cause such views to change. All information is subject to possible correction. Information may quickly become unreliable for various reasons, including changes in market conditions or economic circumstances.
03Mismatch analysis
The description names two pre-deployed payload contracts: one on Ethereum (0x2ee993...) and one on Optimism (0xE1Dd79...). Action 0 directly targets and executes the Ethereum payload address, matching exactly. Action 1 targets a different Ethereum-side address (0x5f5c0287...) but passes the exact Optimism payload address as its function argument — this is consistent with Aave's known cross-chain governance bridge pattern, where an Ethereum contract forwards execution to an L2 payload rather than the L2 contract being called directly from mainnet governance. This is not a target mismatch but the expected mechanism for cross-chain proposal execution. The specific supply cap values (BAL, LINK, OP) are encoded inside the payload contracts' own logic, which is not visible in the decoded calldata (only the outer execute() calls are shown), so exact numeric verification of the caps isn't possible from this data alone — this is typical for Aave payload-controller-style proposals and lowers confidence slightly rather than indicating a problem. No omitted, extra, or mismatched actions were found relative to the description's claims about which contracts would be invoked.
Generated by Kvorum
04Actions
- Target
- 0x2ee9…e5ed
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
- Target
- 0x5f5c…6711
- Value
- 0 wei
- Function
- execute(address)
- Arguments
{ "0": "0xE1Dd796dBEB5A67CE37CbC52dCD164D0535c901E" }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 320x329c…3ed4 | For | 242.5K | 38.44% | — | 3y ago |
| 070x0703…961b | For | 109.3K | 17.33% | — | 3y ago |
| 620x62a4…816a | For | 83.2K | 13.20% | — | 3y ago |
| 130x13bd…8548 | For | 82.2K | 13.03% | — | 3y ago |
| E40xe459…e666 | For | 51.9K | 8.23% | — | 3y ago |
| B90xb933…8dd1 | For | 42K | 6.66% | — | 3y ago |
| EA0xea17…6676 | For | 15.3K | 2.42% | — | 3y ago |
| 180x1855…98ba | For | 3K | 0.48% | — | 3y ago |
| A00xa06c…61f7 | For | 604.6 | 0.10% | — | 3y ago |
| 050x0527…8469 | For | 403 | 0.06% | — | 3y ago |
| 370x3745…82ab | For | 254.3 | 0.04% | — | 3y ago |
| F10xf191…7914 | For | 49.6 | 0.01% | — | 3y ago |
| DF0xdf06…4977 | For | 27.3 | 0.00% | — | 3y ago |
| AA0xaa63…352b | For | 3.4 | 0.00% | — | 3y ago |
| DD0xdd9d…945a | For | 3.1 | 0.00% | — | 3y ago |
| 770x77b6…e4b0 | For | 3.1 | 0.00% | — | 3y ago |
| 5F0x5f38…f51f | For | 3.1 | 0.00% | — | 3y ago |
| 760x7615…1867 | For | 3 | 0.00% | — | 3y ago |
| A30xa38f…1085 | For | 1.3 | 0.00% | — | 3y ago |
| 040x04cd…ddeb | For | 1.1 | 0.00% | — | 3y ago |
| 740x74a2…c125 | For | 1 | 0.00% | — | 3y ago |
| 730x7306…c011 | For | 1 | 0.00% | — | 3y ago |
| 0C0x0c9f…408b | For | 1 | 0.00% | — | 3y ago |
| 670x671f…634f | For | 1 | 0.00% | — | 3y ago |
| 560x56a1…4940 | For | 0.5 | 0.00% | — | 3y ago |
| FF0xffb6…61cf | For | 0.2 | 0.00% | — | 3y ago |
| CF0xcf9e…bdac | For | 0.2 | 0.00% | — | 3y ago |
| A40xa417…a567 | For | 0.2 | 0.00% | — | 3y ago |
| 7C0x7c45…6af8 | For | 0.2 | 0.00% | — | 3y ago |
| A30xa3e8…2af3 | For | 0.2 | 0.00% | — | 3y ago |
| 4F0x4f54…1330 | For | 0.2 | 0.00% | — | 3y ago |
| 110x11fb…04c4 | For | 0.2 | 0.00% | — | 3y ago |
| C10xc1a6…9231 | For | 0.1 | 0.00% | — | 3y ago |
| A60xa6b2…cc22 | For | 0.1 | 0.00% | — | 3y ago |
07Forum
- ARFC: Gauntlet Supply Cap Updates for Ethereum v3, Optimism v3, 2023-07-05 ↗discourse · high confidence
Arguments for
- Supply caps for BAL, LINK, and OP are underutilized (20%, 5%, and 1% respectively) and should be lowered to reduce tail risk exposure.— Gauntlet
Arguments against
None surfaced.
Notable participants
- GauntletRisk analysis firm that authored and advanced the cap reduction proposal based on their methodology.
Generated by Kvorum
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