ARC: Risk Parameter Updates 2021-10-21

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Inkyamze proposed adjustments to four risk parameters across three Aave V2 assets to balance risk tolerance, with changes to ENJ Liquidation Threshold, DPI Loan To Value, DPI Liquidation Bonus, and ZRX Loan To Value. The discussion also covered improvements in borrow usage precision, future plans for Aave Polygon support, and technical details for the upcoming AIP.

The discussion primarily revolved around a proposal by Inkyamze to adjust four risk parameters across three Aave V2 assets, including LTV, Liquidation Threshold, and Liquidation Bonus. The proposed changes aim to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets. The changes include adjustments to ENJ Liquidation Threshold, DPI Loan To Value, DPI Liquidation Bonus, and ZRX Loan To Value1.

The proposal received support from JeremyKeating, who also requested more precision in the borrow usage forecast. This led to Pauljlei confirming that the Dashboard has been adjusted to show more precision in borrow usage3,4. A query was raised by Allan.g about the availability of a Dashboard for Aave Polygon, to which Inkyamze clarified that Gauntlet’s engagement is currently only scoped for Aave V2, but plans are in place to expand support for Aave Polygon risk parameters and dashboard in the future5,6.

In addition to the proposal, Inkyamze provided implementation details for the forthcoming AIP, including the addresses and new values for DPI, ENJ, and ZRX. He also shared some technical details about ZRX, including its symbol, address, and loan-to-value ratio (LTV)8. The discussion thus provided a comprehensive overview of the proposed changes to the risk parameters and the future plans for Aave Polygon.

Posted 2 years ago

Last reply 2 years ago

Summary updated 2 months ago

Last updated 05/12 01:14