v3-65-aave-v3-ethereum-borrow-cap-reduction.md

Proposal 65. Borrow Cap Reductions on Aave V3 Ethereum.

Voting link

https://vote.onaave.com/proposal/?proposalId=65

Governance forum discussion

https://governance.aave.com/t/arfc-chaos-labs-borrow-cap-reductions-on-aave-ethereum-03-11-24/16918

Payloads

• Ethereum - proposal payloads

Certora analysis

Proposal types

🔧 📊 configuration update

Context

This proposal aims to reduce the borrow cap of long-tailed asset due to them being a low income source to the protocol, while posing a relatively high risk.

Proposal creation

Transaction: https://etherscan.io/tx/0xf50917b0418bf6317d10b8f089af709f1219ca74249a9773dd190fe60220fe57

- proposalId: 65
- creator: 0x57ab7ee15ce5ecacb1ab84ee42d5a9d0d8112922
- accessLevel: 1
- ipfsHash: 0xbb9f1bab4d67aa7d8f086735042c66e2d7e1ad2126479bc4e4ef1fab676947c5

createProposal() parameters

{
  "payloads": [ 
    { 
      "chain": "1", 
      "accessLevel": "1", 
      "payloadsController": "0xdAbad81aF85554E9ae636395611C58F7eC1aAEc5", 
      "payloadId": "91" 
    }, 
  ], 
  "votingPortal": "0x9b24C168d6A76b5459B1d47071a54962a4df36c3", 
  "ipfsHash": "0xbb9f1bab4d67aa7d8f086735042c66e2d7e1ad2126479bc4e4ef1fab676947c5" 
}

Aave Seatbelt report

Proposal report

https://github.com/bgd-labs/seatbelt-gov-v3/blob/main/reports/proposals/65.md

Payload reports

• Ethereum V3 - https://github.com/bgd-labs/seatbelt-gov-v3/blob/main/reports/payloads/1/0xdAbad81aF85554E9ae636395611C58F7eC1aAEc5/91.md

Technical analysis

We have verified that the payload sets the following borrow caps to the listed assets without changing the supply caps:

MKR: 1.98k

LDO: 1.5m

UNI: 330k

RPL: 316.8k

SNX: 150k

FXS: 330k

CRV: 2.75m

STG: 3.2m

KNC: 350k

1INCH: 475.2k

BAL: 244.2k

The proposal is consistent with the description on both Snapshot and the governance forum.

Certora validations

✅ The code on the proposal payload corresponds to the proposal specification.

✅ The proposal includes a proper tests suite, checking all necessary post-conditions.

✅ BGD reviewed the payload before the proposal was submitted.

✅ Certora reviewed the procedure followed to submit the proposal.