The lending protocol Aave increased the supply cap for cbETH on its Base market, indicating higher user demand for the wrapped staking asset on the Ethereum layer-2 network.
Aave, a decentralized lending protocol, has raised the supply cap for cbETH on its Base market to accommodate increasing demand. The move means more cbETH can now be deposited into the market on Base, a layer-2 blockchain built to scale Ethereum. cbETH is Coinbase Wrapped Staked ETH, a token representing staked Ether that can be used in decentralized finance applications. Supply caps are risk-management limits used by lending protocols to control how much of a specific asset can enter a market.