Aave proposes tighter constraints for automated supply and borrow caps

What happened

Chaos Labs proposed criteria defining which reserves may receive automated cap changes.

What changed

Young assets, E-mode-only collateral, and smaller markets would be excluded from some or all automated adjustments and return to manual review.

What did not change

The primary record did not establish a completed vote, execution, changed cap value, or changed Risk Steward authority.

Confirmed

• The framework already operated on Avalanche, Base, and Arbitrum.
• Assets younger than 30 days would be excluded.
• E-mode-only collateral would be excluded from automated increases.
• Markets below $5 million would be excluded from automated increases and decreases.

Still open

• The final vote and implementation payload.
• The enforcing code or configuration.
• Manual-review latency during fast market changes.

What it means for an advisor

• Review the boundary between automated and manual cap authority.
• Verify executed configuration and exception handling before treating the safeguards as operative.