[ARFC] Aave V2 Markets Deprecation Plan

Voting ended over 2 years agoSucceeded

Summary

A proposal to gradually wind down the frozen markets on Aave V2 Ethereum via a series of LT reductions. This is a snapshot for a direct-to-AIP framework for V2 deprecation recommendations. For more details, see the full forum post here.

Motivation

As part of Gauntlet’s and Chaos’ ongoing commitment to maintaining the highest standards of operation on Aave, we propose to gradually wind down the frozen Aave V2 Ethereum markets via a scheduled series of LT reductions.

This proposal represents the next step in continuous efforts to reduce risk in the V2 markets and encourage the transition to V3. It follows a series of previous proposals, including:

While we advocate for proactive offboarding of the market, our recommendation is that Chaos and Gauntlet deliver a bi-weekly analysis and recommendation for each individual LT reduction. This would be similar to the process of increasing supply caps. If the risk managers agree on a single recommendation, the proposal would move directly to an AIP, but in case of disagreement, the more conservative approach would be adopted, with the alternative proposal put to a Snapshot vote for the community to decide.

Specification

Following is our recommended bi-weekly plan for communications and community transparency of the process:

Monday - Risk teams conduct independent analyses and recommendations, considering (but not limited to) the following:
- Impact of the LT reduction on user positions - number of accounts and total amounts eligible for liquidation post-LT update
- Impact of the LT reduction on the health factor of the top accounts
- On-chain liquidity
Tuesday - Gauntlet and Chaos Labs post a joint recommendation post after syncing on their analyses above
Wednesday - Post AIP
- If risk teams are not aligned on a single recommendation, a Snapshot vote could be posted to gauge community preference.

Disclaimer: Gauntlet reserves the right to not move forward with any parameter changes recommended in Snapshot polls, if market conditions change meaningfully.

By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos.

Off-Chain Vote

YAE

635.23K AAVE100%

NAE

39.95 AAVE0%

Abstain

22.29 AAVE0%

Quorum:199%

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Discussion

[ARFC] Aave V2 Markets Deprecation Plan

Timeline

Sep 25, 2023Proposal created

Sep 26, 2023Proposal vote started

Sep 29, 2023Proposal vote ended

Jan 30, 2026Proposal updated

Motivation

This proposal represents the next step in continuous efforts to reduce risk in the V2 markets and encourage the transition to V3. It follows a series of previous proposals, including:

Specification

Following is our recommended bi-weekly plan for communications and community transparency of the process:

Monday - Risk teams conduct independent analyses and recommendations, considering (but not limited to) the following:

Impact of the LT reduction on user positions - number of accounts and total amounts eligible for liquidation post-LT update
Impact of the LT reduction on the health factor of the top accounts
On-chain liquidity

Tuesday - Gauntlet and Chaos Labs post a joint recommendation post after syncing on their analyses above

Wednesday - Post AIP

If risk teams are not aligned on a single recommendation, a Snapshot vote could be posted to gauge community preference.

Disclaimer: Gauntlet reserves the right to not move forward with any parameter changes recommended in Snapshot polls, if market conditions change meaningfully.

By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos.