Technical maintenance proposals

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Caps AGRS activation on Base/Avalanche

Simple Summary

Following the successful operation of the cap risk stewards (AGRS) on Aave v3 Arbitrum since the end of February, this proposal enables exactly the same constraint system on Base and Avalanche.


Motivation

Proposal 253 approved by governance and executed February 25th enabled an automated AGRS (Aave Generalised Risk Stewards) system to allow modification of supply and borrow caps in Aave v3 Arbitrum as pilot, to make caps maintenance more efficient, reducing the overall overhead of updating them via manual stewards or governance proposals, while having a more dynamic system reducing the delta between caps and supplies/borrowings.

Since then, the system has been working flawlessly on Arbitrum, with 55 caps updates. So, following the plan, it is reasonable to continue optimising by introducing the same on other networks, more precisely Base and Avalanche.


Specification

This new Base and Avalanche instances of AGRS will mirror the same infrastructure as the currently active on Arbitrum, but a summary of specifications is the following:

  • The AGRS will only have two configurable parameters: supply and borrow caps.
  • Recommendation of these parameters will be submitted to a RiskOracle smart contract, from the Edge off-chain infrastructure.
  • Between the risk oracle smart contract and the AGRS contract, there will be a thin middleware AaveStewardCapsInjector, with the following logic:
    • Takes recommendations from the Edge Risk Oracle side and propagates them to the AGRS contract.
    • Enforce that only the whitelisted assets can be acted upon.
    • Given the protections (percentage constraints and time delay) on the AGRS side and that it is an assumption that risk recommendations will be timed correctly on the Edge Risk Oracle side, the propagation will be permissionless.
  • The AaveStewardCapsInjector will be part of the Aave Robot infrastructure, running on Chainlink Automation and consuming LINK from the Aave Collector on each network.
  • The new AGRS contract will be given RISK_ADMIN role.
  • All currently listed assets on Base and Arbitrum will be automated, aside from rsETH and ezETH on Base, as those have pretty ad-hoc caps dynamics.
  • Constraints on both Base and Avalanche will be the same as on the system currently live on Arbitrum: maximum 30% increase/decrease every 3 days
  • The off-chain caps methodology description can be found on the Aave governance forum HERE.

Base

Contract Address
EdgeRiskStewardCaps 0xB892202d9Ce2C16C565A492a5168689b215Eb269
AaveStewardInjectorCaps 0x4f84A364B66Eb6280350da011829a6BD02B4712f
RiskOracle 0x239d3Bc5fa247337287cb03f53B8bc63DBBc332D

Avalanche

Contract Address
EdgeRiskStewardCaps 0x57218F3aB422A39115951c3Eb06881a7A719DfdD
AaveStewardInjectorCaps 0x54714FAc85b0bf627288CC3a186dE81A42f1D635
RiskOracle 0x1273f29204fC102bD4620485B13cFE27a794fF32
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