Aave restores supply and borrow caps on Gnosis

What happened

Aave Governance V3 executed proposal 406, restoring supply and borrow caps across the Gnosis instance after caps had been reduced during the Balancer exploit response and canonical-bridge pause.

What changed

The payload reopened capacity for wstETH, sDAI, GNO, WETH, USDC.e, xDAI, GHO, and EURe under the specified revised caps.

What did not change

Execution did not itself prove that the Gnosis canonical bridge had reopened, that cross-market pricing had normalized, or that the Balancer-related recovery was complete.

Confirmed

• Proposal 406 executed on November 10, 2025.
• The prior precautionary configuration had reduced many supply and borrow caps to one.
• The executed payload increased caps for the listed Gnosis reserves.
• The stated rationale was anticipated restoration of bridge-mediated arbitrage and price alignment.

Still open

• The exact canonical-bridge reopening time and operational state at execution.
• Whether DEX and oracle prices had fully reconverged before capacity returned.
• Live utilization, liquidation performance, and any bad debt following reinstatement.
• Whether any approved or client-held exposure used the Gnosis instance.

What it means for an advisor

• Review the Aave Gnosis memo assumptions because capacity was restored based on an expected bridge recovery.
• Verify bridge status, cross-market price alignment, reserve caps, and liquidation liquidity independently.
• Do not extend any Ethereum-only Aave approval to Gnosis solely because the caps were reinstated.