TL;DR:
Pauljlei proposed adjustments to eleven risk parameters across seven assets in the Aave V2 protocol, including changes to the Loan To Value (LTV) and Liquidation Threshold for certain assets, and a decrease in the Liquidation Bonus for others. The proposal, informed by various data inputs and an optimization function, was put to a community vote, with the transaction link provided for tracking updates after execution.
In a bid to maintain the overall risk tolerance of the Aave V2 protocol, Pauljlei proposed adjustments to eleven risk parameters across seven assets. These adjustments, which are part of Gauntlet's regular parameter recommendations, include increasing the Loan To Value (LTV) and Liquidation Threshold for CRV, FEI, SNX, and xSUSHI, and decreasing the Liquidation Bonus for LINK, MKR, and UNI. The recommendations were informed by an optimization function that balances insolvencies, liquidations, and borrow usage, and were based on a variety of data inputs such as asset volatility, asset correlation, asset collateral usage, DEX / CEX liquidity, trading volume, expected market impact of trades, and liquidator behavior.
Pauljlei also provided volatility and exchange volume data from 01/18 to 02/09 for the seven assets, which were used in the parameter recommendations. A Snapshot was initiated for the community to vote on these changes, with an AIP targeted for 2022-02-15. However, Yjoe had difficulty finding the link to the on-chain transaction for tracking updates. Pauljlei clarified that the on-chain proposal had not been published yet but would be posted after it was up, with plans to publish it the next day (Pacific Time).
The AIP was later announced to be live for voting by Pauljlei. After the proposal was executed, Yjoe requested for the transaction link, which Pauljlei provided. This marks the conclusion of the discussion, with the community actively participating in the voting process and tracking the updates of the proposal.
Posted 2 years ago
Last reply 2 years ago
Summary updated 2 months ago
Last updated 09/12 13:53