This proposal asks for approval of the community to define (keep or change) the pricing approach of WBTC on Aave. The options are: 1) keep the pricing of WBTC based on the underlying BTC, same as currently on Aave v2 Ethereum and other pools OR 2) change the pricing model to use WBTC-based feeds.
There has been extensive discussion on https://governance.aave.com/t/wbtcs-and-others-pricing-mechanism-on-aave/10825 about the topic, and with Aave v3 Ethereum upcoming, it is fundamental for the community to take a decision.
Generally, the risk entities currently engaged with the Aave community agree that using a WBTC/USD (or ETH) feed with option 2 can bring some benefits to the pool. From the technical side, at BGD we think both options are perfectly legitimate, but when having enough liquidity (and WBTC seems to have it), usually it is better to price directly based on the asset itself.
Whatever option the community adopts will be applied on Aave v3 Ethereum. If the option selected is 2), we will work on adapting all other Aave instances to use the new pricing approach.
Given this proposal will authorise to already doing changes in production, the requirements are the same as on Level 1 of the Aave governance: 320k votes on the "winning" option and 80K differential between them.