# Aave approves dynamic CAPO calibration at the ARFC stage

> 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.

- URL: https://riadefi.com/on-chain/2025-07-26-aave-v3-capo-risk-oracle-dynamic-calibration-approval/
- Type: Control change
- Stage: Approved, not executed
- Evidence: confirmed
- Materiality: material
- Event date: 2025-07-26
- Version: 1, published 2026-08-22 (first published 2026-08-22)
- Follow-up: 2025-08-11
- Advisor-relevant: yes
- Affects: Aave v3 (protocol)

## 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.

## Sources

1. [[ARFC] Dynamic Calibration of CAPO Parameters via Risk Oracles](https://snapshot.org/#/aavedao.eth/proposal/0x66aa6904f140d56ada880f45c911994c5c6cc20109b55081f508ccdd6417066d) · Aave DAO Snapshot · 2025-07-22


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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.