ARC: Risk Parameter Updates for Aave V2 and Aave Arc (Fireblocks) 2022-08-18

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Pauljlei proposed adjustments to five risk parameters of the Aave V2 protocol, including changes to the Liquidation Threshold and Bonus for CRV, DAI, and WBTC assets, in line with the community's Risk Off Framework. A snapshot vote has been initiated for community input, and no accounts will be liquidated due to these updates from 8/20/2022 to 8/24/2022.

In an effort to maintain the overall risk tolerance of the Aave V2 protocol, Pauljlei has proposed a series of adjustments to five risk parameters, including the Liquidation Threshold and Liquidation Bonus for three assets. This proposal is a continuation of Gauntlet's regular parameter recommendations and includes specific changes to the CRV, DAI, and WBTC assets. The proposed changes are designed to align with the community's Risk Off Framework and include a reduction in the CRV Liquidation Threshold from 64% to 61% and the CRV Liquidation Bonus from 8.5% to 8.0%. Additionally, the DAI Liquidation Threshold is proposed to increase from 85% to 90%, and the WBTC Liquidation Threshold and Bonus are proposed to increase from 75% to 80% and decrease from 6.5% to 5.0% respectively 1,2,3.

From the period of 8/20/2022 to 8/24/2022, Pauljlei has confirmed that no accounts would be liquidated as a result of these parameter updates (Posts 4, 5, 6, 7, 8). To facilitate community input on these proposed changes, a snapshot vote has been initiated. The outcome of this vote will determine the implementation of these proposed risk parameter adjustments.

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Last updated 09/12 13:53