The discussion primarily revolved around a proposal by MarcZeller for an Aave Request for Comments (ARFC). The proposal seeks to align the AAVE risk parameters on the Aave V3 Ethereum market with those on Aave V2, with the aim of making Aave V3 more appealing for migration. The proposed changes include an increase in the Loan-to-Value (LTV) from 60% to 66% and the Liquidation Threshold (LT) from 70% to 73%. The Liquidation Penalty (LP) will remain at 7.5%, as it is already in alignment with Aave V2. No changes to Aave V3 caps or interest rate strategies are proposed¹.

The proposal received support from Chaos Labs, 0xkeyrock.eth, and Gauntlet. Gauntlet further added that their models do not foresee any outsized risk resulting from these parameter changes ^2,4,5. User Mintalex sought clarification on the LTV and LT parameters, and MathisGD clarified that the discussion pertains to the parameters for the AAVE token ^6,7.

The discussion concluded with the proposal being escalated to the Snapshot stage for further discussion and voting³. This indicates that the community is actively engaged in the decision-making process and is open to changes that could potentially enhance the attractiveness and functionality of the Aave V3 Ethereum market.