ARC: Risk Parameter Updates 2022-05-05

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Pauljlei proposed adjustments to nine risk parameters across five Aave V2 assets (BAL, DAI, XSUSHI, STETH, YFI) as part of Gauntlet's regular recommendations, aiming to balance protocol risk. The proposal, supplemented with volatility and exchange volume data, led to a Snapshot vote and an upcoming Aave Improvement Proposal (AIP) targeted for 2022-05-10.

The discussion primarily revolved around the proposal by Pauljlei to adjust nine risk parameters across five Aave V2 assets. This proposal is part of Gauntlet's regular parameter recommendations, aiming to balance the overall risk tolerance of the protocol while making specific risk trade-offs between assets. The proposed changes include adjustments to the Loan to Value (LTV), Liquidation Threshold, and Liquidation Bonus for BAL, DAI, XSUSHI, STETH, and YFI.

Pauljlei supplemented the proposal with volatility and exchange volume data for each of the five assets, spanning from 04/21 to 05/05. The community was urged to utilize Gauntlet’s Risk Dashboard to gain a better understanding of the updated parameter suggestions and the general market risk in Aave V2.

The discussion culminated in the initiation of a Snapshot vote to decide on these changes2. The community is looking forward to an Aave Improvement Proposal (AIP) targeted for 2022-05-101. This proposal and subsequent vote represent a significant step in maintaining the balance of risk and reward within the Aave V2 protocol.

Posted 2 years ago

Last reply 2 years ago

Summary updated 2 months ago

Last updated 04/12 00:18