[AAVE] Chaos Labs Risk Parameter Updates AaveV3

Voting ended almost 2 years agoSucceeded

Simple Summary

A proposal to adjust ten (10) total risk parameters, including Loan-to-Value and Liquidation Threshold, across five (5) Aave V3 assets.

Motivation

Increasing the liquidation threshold and LTV for assets allows Aave to enhance users’ capital efficiency. However, this must be balanced with proper risk management to ensure that there is a sufficient buffer in the event of large drawdowns and/or liquidations. The analyses below were conducted utilizing our LT simulations, which showed either minimal or no increases in VaR at the recommended LT levels, while also considering user distribution and on-chain liquidity.

Specification

Gnosis

--

| -- | | GNO | 45% | 48% | 50% | 53% |

Optimism

--

| -- | | OP | 50% | 58% | 60% | 63% |

Arbitrum

--

| -- | | ARB | 50% | 58% | 60% | 63% |

Polygon

| -- | |
| -- | | stMATIC | 45% | 48% | 56% | 58% | | MaticX | 45% | 50% | 58% | 60% |

References

Implementation: AaveV3Polygon, AaveV3Optimism, AaveV3Arbitrum, AaveV3Gnosis
Tests: AaveV3Polygon, AaveV3Optimism, AaveV3Arbitrum, AaveV3Gnosis
Snapshot
Discussion

Copyright

https://app.aave.com/governance/v3/proposal/?proposalId=118

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Discussion

[AAVE] Chaos Labs Risk Parameter Updates AaveV3

Timeline

Jun 08, 2024Proposal created

Jun 09, 2024Proposal vote started

Jun 11, 2024Proposal vote ended

Mar 26, 2026Proposal updated

Motivation

Specification

Gnosis

| -- | | GNO | 45% | 48% | 50% | 53% |

Optimism

| -- | | OP | 50% | 58% | 60% | 63% |

Arbitrum

| -- | | ARB | 50% | 58% | 60% | 63% |

Polygon

| -- | |

| -- | | stMATIC | 45% | 48% | 56% | 58% | | MaticX | 45% | 50% | 58% | 60% |