This is an archive of our post on Aave governance forum. Read the full thread here.

We thank @ChaosLabs for spearheading this initiative and proposing further integration of an automated Risk Oracle framework powered by Edge Infrastructure. This proposal represents a meaningful step toward enhancing the efficiency and responsiveness of supply and borrow cap updates within the Aave Protocol while removing some operational overhead.

We’re generally in favor of Edge integration within Aave and appreciate the phased approach and conservative boundaries (e.g., the 30% cap increase limit) outlined in the proposal.

Our team has been closely monitoring the changes implemented during the WETH borrowing rate pilot project on the Prime (formerly Lido) instance. To date, no significant issues have been observed. We would appreciate it if @ChaosLabs could share the lessons they learned during this trial.

While the automation of cap updates reduces operational overhead, it also increases reliance on centralized components, such as the Edge Infrastructure and the methodologies employed. This introduces centralization risks that must be carefully balanced. In a perfect world, every decision could be independently verified by users. As such, we will continue to serve as watchdogs, maintaining our own methodologies to assess and challenge decisions if needed.