[ARFC] AgEUR risk parameters Aave Polygon V3 update

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MarcZeller proposed an Aave Risk Framework Change (ARFC) to modify risk parameters for AgEUR, aiming to enhance user experience and enable new strategies. Despite initial support, the proposal was halted due to an exploit in the agEUR D3M module, highlighting the importance of risk assessment and feedback from risk service providers in protocol changes.

The discussion primarily revolved around a proposal by MarcZeller for an Aave Risk Framework Change (ARFC)1. The proposed change was aimed at modifying the risk parameters for AgEUR, a decentralized stablecoin, to make it a collateral asset on the Aave V3 Polygon market. The proposal included enabling borrowing and collateral, setting the Loan To Value at 75%, and the Liquidation Threshold at 80%, among other parameters. The goal was to enhance the Aave user experience by allowing for more strategic features and potential development areas for the protocol's usage.

The proposal was met with support from community members like Sogipec and Gabuzo, who saw it as a beneficial addition to the European ecosystem and a means to enable new strategies for users2,3. They also highlighted its potential benefits for Angle, AAVE, and non-USD stable coin users. However, the proposal was later halted by MarcZeller due to an exploit in the agEUR D3M module into Euler4. He stressed the importance of waiting for feedback from risk service providers before escalating proposals with a collateral factor, as their feedback adds value to the DAO.

In conclusion, while the proposed ARFC was initially well-received, it was ultimately put on hold due to security concerns. The discussion underscored the importance of thorough risk assessment and feedback from risk service providers in the decision-making process for protocol changes.

Posted 9 months ago

Last reply 8 months ago

Summary updated 2 months ago

Last updated 04/12 00:18