Aave approves dynamic CAPO calibration at the ARFC stage

What happened

Aave DAO voters approved an ARFC framework for Risk Oracles to update CAPO snapshotRatio and maxYearlyRatioGrowthPercent parameters.

What changed

The approved design would replace infrequent manual calibration with bounded off-chain recommendations and on-chain updates affecting the maximum recognized exchange-rate growth of yield-bearing collateral.

What did not change

No AIP or deployed Risk Oracle was established within July. Existing CAPO contracts, asset allowlists, and live parameters were not changed by the Snapshot alone.

Confirmed

• The Snapshot closed on July 26, 2025 with approximately 777,990 voting YAE and negligible opposition.
• The approved framework covers snapshotRatio and maxYearlyRatioGrowthPercent.
• The proposed snapshotRatio constraint is at most a 5% relative change every 14 days.
• The proposed annual-growth constraint is at most a 10% relative change every three days.
• The framework uses off-chain analysis to recommend bounded on-chain parameter updates.

Still open

• The final implementation, asset allowlist, contracts, and assigned roles.
• Whether later AIP constraints differ from the approved ARFC design.
• Failure and revocation handling for erroneous or compromised recommendations.
• Whether automated bounds remain sufficiently tight without incorrectly capping legitimate collateral appreciation.

What it means for an advisor

• Review the Aave memo's collateral-oracle and delegated-control assumptions before the design becomes operative.
• Verify the final AIP, allowlist, bounds, roles, and deployed state rather than inferring safety from ARFC approval.