Gauntlet recommendation to reactivate CRV borrowing on v3
01Summary
Gauntlet recommends reactivating CRV borrowing on Aave v3 across Ethereum and Polygon, which was disabled during the Vyper exploit. The proposal includes adjusting CRV supply caps, borrow caps, and debt ceilings downward while enabling borrowing functionality again on both chains.
- Type
- parameter change
Key changes
- Reactivate CRV borrowing on Ethereum v3 by setting isBorrowable to True(high)
- Reduce CRV supply cap on Ethereum v3 from 51m to 7.5m(high)
- Reduce CRV borrow cap on Ethereum v3 from 7.7m to 5m(high)
- Reduce CRV debt ceiling on Ethereum v3 from $5m to $1m(high)
- Reactivate CRV borrowing on Polygon v3 by setting isBorrowable to True(high)
- Reduce CRV borrow cap on Polygon v3 from 900k to 300k(high)
Notable concerns
- Borrowing was previously disabled due to excess CRV positions creating downward price pressure; proposal assumes majority of risky positions have exited the system
Generated by Kvorum
02Description
Simple Summary
During the Vyper exploit, CRV borrowing was disabled on Ethereum and Polygon v3 with the hope of mitigating downward CRV price movement in light of excess CRV positions on Aave v2.
Given that a large majority of those CRV positions with excess risk have left the system, Gauntlet recommends reactivating CRV borrowing. In order to do so, we recommend a few other changes to CRV parameterization.
Specification
| Chain | Asset | Parameter | Current Value | Recommended Value |
|---|---|---|---|---|
| Ethereum v3 | CRV | supplyCap | 51m | 7.5m |
| Ethereum v3 | CRV | borrowCap | 7.7m | 5m |
| Ethereum v3 | CRV | debtCeiling | $5m | $1m |
| Ethereum v3 | CRV | isBorrowable | False | True |
| Polygon v3 | CRV | borrowCap | 900k | 300k |
| Polygon v3 | CRV | isBorrowable | False | True |
References
- Implementation: AaveV3Ethereum, AaveV3Polygon
- Tests: AaveV3Ethereum, AaveV3Polygon
- Snapshot
- Discussion
Disclaimer
Gauntlet has not received any compensation from any third-party in exchange for recommending any of the actions contained in this proposal.
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.
03Mismatch analysis
The proposal description lays out specific parameter changes (supplyCap, borrowCap, debtCeiling, isBorrowable) for CRV on Aave v3 Ethereum and Polygon. The decoded on-chain actions, however, are two calls to `forwardPayloadForExecution`, a standard Aave cross-chain governance bridge function that dispatches a previously-queued payload (identified by its ID and target chain) to be executed on the destination network. Action 0 targets chain id 1 (Ethereum) and action 1 targets chain id 137 (Polygon), which matches the two chains named in the description. However, the actual parameter changes (cap values, debt ceiling, isBorrowable flags) are encoded inside the payload contracts at 0xdAbad81a... and 0x401B5D02..., not directly visible in this calldata. Because this is the standard and expected pattern for BGD-labs/Aave-Governance-v3 cross-chain proposals (the top-level proposal action only forwards a payload reference, with the substantive changes implemented in the payload contract itself, matching the linked GitHub implementation files), I do not consider this a discrepancy — it is routine execution mechanics. That said, since the actual numeric parameter changes cannot be independently verified from the decoded calldata alone (they live in the referenced payload contracts), confidence in a full line-by-line match is low. No values, targets, or omitted/extra actions are apparent that would indicate the proposal misrepresents its calldata; the chain targeting and general intent (activating CRV borrowing on Ethereum and Polygon v3) are consistent with the on-chain forwarding actions.
Generated by Kvorum
04Actions
- Target
- 0x9aee…2bc7
- Value
- 0 wei
- Function
- forwardPayloadForExecution((uint256,uint8,address,uint40))
- Arguments
{ "0": [ "1", "1", "0xdAbad81aF85554E9ae636395611C58F7eC1aAEc5", "31" ] }- Calldata
- Target
- 0x9aee…2bc7
- Value
- 0 wei
- Function
- forwardPayloadForExecution((uint256,uint8,address,uint40))
- Arguments
{ "0": [ "137", "1", "0x401B5D0294E23637c18fcc38b1Bca814CDa2637C", "18" ] }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 570x57ab…2922 | For | 144.3K | 26.89% | — | 3y ago |
| 320x329c…3ed4 | For | 103.1K | 19.22% | — | 3y ago |
| 130x13bd…8548 | For | 60K | 11.18% | — | 3y ago |
| 230x2331…7e73 | For | 60K | 11.18% | — | 3y ago |
| 2C0x2cc1…4df1 | For | 43.7K | 8.14% | — | 3y ago |
| B90xb933…8dd1 | For | 42.6K | 7.93% | — | 3y ago |
| EZezr3al.eth0x8659…7d0e | For | 38.1K | 7.10% | — | 3y ago |
| 870x8787…ea52 | For | 21.2K | 3.95% | — | 3y ago |
| E40xe459…e666 | For | 20K | 3.73% | — | 3y ago |
| 180x1855…98ba | For | 3.6K | 0.66% | — | 3y ago |
| EA0xea17…6676 | For | 38.6 | 0.01% | — | 3y ago |
| DF0xdf06…4977 | For | 27.3 | 0.01% | — | 3y ago |
| DB0xdb31…eab4 | For | 1.2 | 0.00% | — | 3y ago |
| 570x5762…a752 | For | 1 | 0.00% | — | 3y ago |
| 800x80cc…087b | For | 0 | 0.00% | — | 3y ago |
07Forum
No forum thread is confidently linked to this proposal.
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