# \[Proposal\] Increase AAVE capTier from cap3 to cap4 ($10M -\> $30M)

**URL:** <https://forum.balancer.fi/t/proposal-increase-aave-captier-from-cap3-to-cap4-10m-30m/924>\
**Category:** Liquidity Mining \[deprecated\]\
**Created:** [February 10, 2021, 3:32pm UTC](https://forum.balancer.fi/t/proposal-increase-aave-captier-from-cap3-to-cap4-10m-30m/924 "2021-02-10T15:32:58Z")\
**Posts on this page:** 5\
**Page:** 1

<div class="post-metadata">

**Author:** ![The3D](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/the3d/32/409_2.png) [@The3D](https://forum.balancer.fi/u/The3D)\
**Post date:** [February 10, 2021, 3:32pm UTC](https://forum.balancer.fi/t/proposal-increase-aave-captier-from-cap3-to-cap4-10m-30m/924/1 "2021-02-10T15:32:58Z")

</div>

This is a proposal to raise the liquidity mining cap from $10M to $30M for $AAVE

# The Proposal

After the activation of the Balancer Based Safety Module yesterday, the liquidity for $AAVE quickly crossed the 30M mark as new LPs join the AAVE/BAL incentivized Safety Module. Current APY by staking in the Safety Module is 350%, only considering the AAVE rewards, which will presumably attract a lot of liquidity, making Balancer the best protocol to trade AAVE on chain.

# What is The Safety Module?

The Aave Safety Module acts as a collateral for the whole Aave ecosystem. AAVE holders, and now - with the new Balancer Based Stake - AAVE/ETH holders benefit from long term rewards for securing the protocol from insolvency, while at the same time bearing the risk of being slashed in case of shortfall events.  
Having a very liquid onchain market and a consistent capital allocated in the Safety Module greatly increases the safety of the Aave ecosystem and the Aave protocol liquidity providers.

---

<div class="post-metadata">

**Author:** ![rabmarut](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/rabmarut/32/55_2.png) [@rabmarut](https://forum.balancer.fi/u/rabmarut)\
**Post date:** [February 10, 2021, 3:42pm UTC](https://forum.balancer.fi/t/proposal-increase-aave-captier-from-cap3-to-cap4-10m-30m/924/2 "2021-02-10T15:42:49Z")

</div>

Thank you for this proposal. If it’s okay with you, I’ll put it to a vote from Thursday to Sunday this week. We have another cap change proposal that is also ready, and I’ll run them at the same time.

---

<div class="post-metadata">

**Author:** ![Coopahtroopa](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/coopahtroopa/32/287_2.png) [@Coopahtroopa](https://forum.balancer.fi/u/Coopahtroopa)\
**Post date:** [February 11, 2021, 9:17am UTC](https://forum.balancer.fi/t/proposal-increase-aave-captier-from-cap3-to-cap4-10m-30m/924/3 "2021-02-11T09:17:37Z")

</div>

Definitely in favor of increasing this cap.

I would say AAVE is a token that should have the highest cap possible and given the recent addition of BAL to Aave V2, it only makes sense to return the favor.

I would personally support taking the Aave x Balancer partnership as far as both teams are willing to!

Will be voting in favor of this come this weekend 🤝

---

<div class="post-metadata">

**Author:** ![rabmarut](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/rabmarut/32/55_2.png) [@rabmarut](https://forum.balancer.fi/u/rabmarut)\
**Post date:** [February 11, 2021, 3:26pm UTC](https://forum.balancer.fi/t/proposal-increase-aave-captier-from-cap3-to-cap4-10m-30m/924/4 "2021-02-11T15:26:42Z")

</div>

@The3D This proposal is up for a vote beginning in 34 minutes and lasting through the weekend. Please inform your community!

[https://vote.balancer.finance/#/balancer/proposal/QmPvwgUBWVVAxYnPD8cBfe3NUgfWCo32kiYQUkMF2Ktc3n](https://vote.balancer.finance/#/balancer/proposal/QmPvwgUBWVVAxYnPD8cBfe3NUgfWCo32kiYQUkMF2Ktc3n)

> <https://twitter.com/BalancerLabs/status/1359885504683073542?s=20>

---

<div class="post-metadata">

**Author:** ![The3D](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.balancer.fi/the3d/32/409_2.png) [@The3D](https://forum.balancer.fi/u/The3D)\
**Post date:** [February 12, 2021, 10:44am UTC](https://forum.balancer.fi/t/proposal-increase-aave-captier-from-cap3-to-cap4-10m-30m/924/5 "2021-02-12T10:44:54Z")

</div>

Thanks! Sharing right now
