The discussion revolved around the proposal by Alice to enable USDT as collateral on the Aave v3 AVAX market outside of isolation mode and to update the risk parameters to match those of USDC. The goal of this proposal is to encourage the use of USDT for borrowing other assets on the v3 AVAX market, which would increase protocol revenue and make the platform more appealing to lenders¹.

Feedback was sought from risk providers on the proposed risk parameters and caps². Both ChaosLabs and Gauntlet supported the proposal, suggesting that the current LT, LTV, and LB configurations be maintained initially, with potential optimizations considered after usage has been assessed. They also proposed reducing the supply and borrow caps to 100M and 80M, respectively^3,4. The community's role in determining their comfort level with the centralization risk associated with USDT was highlighted by Gauntlet⁴.

The discussion concluded with MarcZeller announcing that the proposal had been moved to the snapshot stage, with voting set to commence the following day⁵. This marks a significant step forward in the potential implementation of the proposal, pending the community's vote.