# Aave restores supply and borrow caps on Gnosis

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

- URL: https://riadefi.com/on-chain/2025-11-10-aave-v3-gnosis-cap-reinstatement/
- Type: Economic change
- Stage: Executed
- Evidence: mixed
- Materiality: material
- Event date: 2025-11-10
- Version: 1, published 2026-08-22 (first published 2026-08-22)
- Follow-up: 2025-11-12
- Advisor-relevant: no
- Affects: Aave v3 (protocol)

Developing. Some claims here are not yet confirmed; they are listed apart from the confirmed facts. A new version replaces this one when the primary evidence changes.

## 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.

## Sources

1. [Reinstate Supply and Borrow Caps on Aave V3 Gnosis Instance](https://app.aave.com/governance/v3/proposal/?proposalId=406) · Aave Governance V3 · 2025-11-06


---

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