The discussion primarily revolves around the proposal by ChaosLabs to gradually reduce the Loan-to-Value (LT) of the CRV market on Aave V2 Ethereum, in response to the Vyper Exploit. The plan involves bi-weekly analyses and recommendations by DAO risk managers for each LT reduction. In case of a consensus, the proposal would proceed to an Aave Improvement Proposal (AIP), otherwise, the more conservative approach would be adopted, with the alternative proposal put to a Snapshot vote¹.

ChaosLabs has suggested a Snapshot vote on 08.14.2023 to decide on the community’s preferred path forward. The options are based on Chaos Labs' and Gauntlet’s recommendations. Chaos Labs proposes a bi-weekly AIP to decrease LT, with a maximum reduction of 10%. Gauntlet has two schedules, both proposing a weekly AIP to reduce LT by 5% under certain conditions². Both Gauntlet and ChaosLabs have agreed to move forward with bi-weekly CRV LT reductions, following independent analyses and consolidated recommendations from both parties⁵. A Snapshot vote for the community to approve a direct-to-AIP framework for the forthcoming reductions has been posted, with voting starting in 24 hours⁵.

In a recent update, ChaosLabs reported that account 0x7a...5428 has repaid 10M USDT and withdrawn nearly 90M CRV, resulting in a healthier state for the CRV market on Aave V2 Ethereum⁸. They plan to include recommendations for further CRV LT reductions within the broader Aave V2 markets deprecation plan to reduce governance overhead⁸. This marks a significant step towards the resolution of the issues arising from the Vyper Exploit.