The discussion primarily revolved around the proposed updates to the risk parameters for FEI on Aave V2 Ethereum, as put forth by ChaosLabs. The proposed changes aim to mitigate potential exposure to FEI, which has been experiencing significant market cap drops and price fluctuations. The measures include lowering the Liquidation Threshold (LT) and Loan-To-Value (LTV) to zero, increasing the Liquidation Bonus (LB) from 6.5% to 10%, and decreasing the UOptimal from 80% to 1%¹. A snapshot for the community vote on these changes has been published, with voting set to commence in 24 hours².

In addition to these changes, Bgdlabs proposed an update to the price feed of FEI on Aave v2. The suggestion is to switch to an adapter composed of the Chainlink ETH / USD with a fixed percentual discount. This change is intended to counteract the risk of price manipulation due to thin liquidity, as FEI is in the advanced stages of offboarding and deprecation³. Despite the FEI price being disconnected from its "real" price, Bgdlabs believes that the net impact of the price feed swap is positive, especially considering that Aave no longer requires Chainlink to run the FEI/ETH feed³.

The discussion culminated with ChaosLabs announcing the publication of AIP-283, a proposal related to the aforementioned changes, and encouraging community participation in the vote⁴. The community's feedback and votes on these proposals will determine the future course of action for managing the risk parameters for FEI on Aave V2 Ethereum.