# Aave proposes tighter constraints for automated supply and borrow caps

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

- URL: https://riadefi.com/on-chain/2025-05-20-aave-v3-risk-oracle-cap-automation-constraints/
- Type: Control change
- Stage: Proposed
- Evidence: confirmed
- Materiality: material
- Event date: 2025-05-20
- Version: 1, published 2026-08-22 (first published 2026-08-22)
- Follow-up: 2025-06-02
- Advisor-relevant: yes
- Affects: Aave v3 (protocol); Aave Supply and Borrow Cap Risk Oracle (oracle)

## 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.

## Sources

1. [[ARFC-Addendum] Supply and Borrow Cap Risk Oracle Constraint Specification](https://governance.aave.com/t/arfc-addendum-supply-and-borrow-cap-risk-oracle-constraint-specification/22074) · Aave Governance Forum / Chaos Labs · 2025-05-15


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.