[ARC] Risk Parameter Updates for Aave V2 Polygon and Aave V3 AVAX 2022-11-23

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Pauljlei proposed parameter changes for Aave V2 Polygon and Aave V3 AVAX due to the volatile market and lack of risk controls, suggesting market freezes and borrow caps on specific assets to mitigate risks. The next steps include initiating an AIP for Aave V2 Polygon and a Snapshot vote for Aave V3 AVAX, with the community's response and vote outcome shaping future risk management strategies.

The discussion primarily revolved around the proposed parameter changes on Aave V2 Polygon and Aave V3 AVAX, put forth by Pauljlei. The need for these changes was underscored by the current volatile market situation and the perceived lack of risk controls in Aave V2. The proposal specifically suggested freezing the markets of BAL, CRV, DPI, GHST, LINK, and SUSHI on Aave V2 Polygon. Additionally, it recommended setting borrow caps on FRAX, MAI, and LINK on Aave V3 AVAX. These borrow caps are intended to mitigate high-risk attack vectors and minimize the potential for market manipulation.

The discussion concluded with the next steps being the initiation of an AIP for the Aave V2 Polygon markets and a Snapshot vote for the Aave V3 AVAX recommendations. Links to the V3 AVAX Snapshot vote and V2 Polygon recommendations were shared for further reference2,3. The community's response to these proposals and the outcome of the Snapshot vote will play a crucial role in shaping the future risk management strategies for Aave V2 and V3.

Posted a year ago

Last reply a year ago

Summary updated 2 months ago

Last updated 08/12 04:39