The discussion began with Depressedape proposing an increase in the Liquidation Threshold for AAVE from 65% to 75%. This proposal was based on AAVE's price action and liquidity across ETH, BTC, and Stablecoin pairs. The community was receptive to this idea, and a vote was initiated, which concluded on January 11, 2021¹. Following the positive response from the poll, Depressedape requested the AAVE Genesis Team to submit an AIP for the proposal².

Alex_BertoG from the risk team responded to the proposal, stating that they would review the suggestion and post their analysis. He also mentioned that Gauntlet would soon publish the Aave Protocol Risk Assessment, which would provide parameter optimisation suggestions³. In a subsequent update, Alex_BertoG shared that while AAVE's market metrics have improved, they still recommend waiting for Gauntlet's Market Risk recommendations or reassessing next month before increasing AAVE's LTV and Liquidation Threshold LT to the levels of LINK⁶.

The discussion concluded with Depressedape expressing gratitude towards Alex_BertoG for the review and showing anticipation for the next evaluation of AAVE's parameters⁷. The community awaits the forthcoming Aave Protocol Risk Assessment from Gauntlet and the subsequent decision on the proposed increase in AAVE's Liquidation Threshold.