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The community is considering a proposal to adjust six risk parameters across three Aave V3 OP assets, including the Liquidation Threshold and Loan-to-Value, as part of Gauntlet's regular recommendations to balance risk factors. However, the proposal is currently on hold as Gauntlet is re-running the analysis, with updates to be provided in due course.
The community has been discussing a proposal to adjust six risk parameters across three Aave V3 OP assets, including the Liquidation Threshold and Loan-to-Value. This proposal is part of Gauntlet's regular parameter recommendations, which aim to balance insolvencies, liquidations, and borrow usage. The proposed changes are intended to maintain the protocol's overall risk tolerance while making risk trade-offs between specific assets.
The proposed changes include increasing the OP Loan-to-Value from 30% to 35% and the OP Liquidation Threshold from 40% to 45%. For WBTC, the Loan-to-Value would increase from 70% to 71% and the Liquidation Threshold from 75% to 76%. For WETH, the Loan-to-Value would slightly increase from 80% to 80.5% and the Liquidation Threshold from 82.5% to 83.5%. These changes are expected to increase capital efficiency while maintaining acceptable risk levels. The community was informed that a Snapshot vote would be initiated and Gauntlet's Aave V3 Risk Dashboard was recommended for understanding the updated parameter suggestions and general market risk in Aave V31.
However, Pauljlei later announced that Gauntlet would not proceed with the current parameter recommendations and they are re-running the analysis2. The community will be updated with the new findings and recommendations in due course. This indicates that the initial proposal is currently on hold and the community should await further updates.
Posted 9 months ago
Last reply 9 months ago
Summary updated 2 months ago
Last updated 08/12 04:39