Supply & Borrow Caps

• Borrow Caps: allow to modulate how much of each asset can be borrowed, which reduces insolvency risk.

• Supply Caps: allow to limit how much of a certain asset is supplied to the Aave protocol. This helps reducing exposure to a certain asset and mitigate attacks like infinite minting or price oracle manipulation.

Aave governance can configure Borrow and Supply Caps

• https://docs.aave.com/developers/getting-started/readme#supply-and-borrow-caps

• https://docs.aave.com/developers/whats-new/supply-borrow-caps