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[ARFC] Recommendations for MAI/MIMATIC, 2023-09-08

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9 replies, 750 views, 13 likes

governance.aave.com

TL;DR:

The community discussed the issue of MAI/MIMATIC trading outside its $1 peg and proposed freezing it and setting its Loan-to-Value (LTV) to 0 across multiple chains as a protective measure. However, due to technical complications and potential risks, AIP-321, which intended to set the MAI/MIMATIC debt ceiling to 0, was cancelled.

The discussion revolved around the issue of MAI/MIMATIC trading outside of its intended peg to $1 and the potential risk buildup. Gauntlet proposed freezing MAI/MIMATIC and setting its Loan-to-Value (LTV) to 0 across multiple chains (Arbitrum, Optimism, Avalanche, Polygon)1. This suggestion was supported by MarcZeller and the ACI3. Monet-supply also recommended zeroing out isolation mode debt ceilings on markets where they are not exhausted, indicating there's about $200-250k of unused capacity across OP ARB and AVAX2.

However, Gauntlet later discovered technical complications around setting the debt ceiling to 0 and intended to cancel AIP-321, which was meant to set the MAI/MIMATIC debt ceiling to 08. This cancellation was executed by Aave Guardian as confirmed by Bgdlabs, who explained that reducing the debt ceiling of an isolated collateral to 0 would remove the asset from isolation, which is the opposite of a protective action9. They also noted that once the debt ceiling is set to 0, the asset can't be re-enabled in isolation in the future without all funds deposited being emptied first9.

In conclusion, the discussion led to the cancellation of AIP-321 due to technical complications and the potential risk it posed. The community agreed on freezing MAI/MIMATIC and setting its LTV to 0 as a protective measure. This decision was supported by various members including Gauntlet, MarcZeller, and Benjamin918 from QiDao 1,3,6.

Posted 3 months ago

Last reply 2 months ago

Summary updated 2 months ago

Last updated 04/12 00:18