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Pauljlei has proposed adjustments to seven risk parameters across four assets (USDC, WETH, AAVE, UNI) in the Aave V2 protocol, based on Gauntlet's simulation engine results, aiming to enhance capital efficiency and reduce bad debt risk. A Snapshot vote has been initiated for community involvement in this decision-making process, with no changes recommended for the Aave Arc protocol at this time.
In an effort to maintain the overall risk tolerance of the Aave V2 protocol, Pauljlei has put forth a proposal to adjust seven risk parameters across four assets. This proposal is a continuation of Gauntlet's regular parameter recommendations and is based on the results from Gauntlet's simulation engine, which uses a wide array of varied input data. The proposed changes include adjustments to the Liquidation Threshold and Loan To Value for USDC, WETH, AAVE, and UNI.
These adjustments are expected to enhance capital efficiency and reduce the risk of bad debt. Specifically, the changes are projected to result in an increase of $8.22M in total borrows across assets. It's important to note that no changes were recommended for the Aave Arc protocol parameterization at this time.
To ensure community involvement in this decision-making process, a Snapshot vote has been initiated 1,2. This allows the community to weigh in on these proposed changes, ensuring a democratic process in the management of the protocol's risk parameters.
Posted a year ago
Last reply a year ago
Summary updated 2 months ago
Last updated 09/12 13:53