Risk Parameter Updates for Aave V2 (2022-11-17)
A proposal to adjust two (2) total risk parameters, including Liquidation Threshold and Loan To Value, across one (1) Aave V2 asset.
This set of recommendations follows AIP 117 to further de-risk the REN market.
Supporting Data on Aave V2
Top 30 borrowers’ aggregate positions & borrow usages
Top 30 borrowers’ entire supply
Top 30 borrowers’ entire borrows
Price changes of key assets since 2022-11-03
Time series of Value at Risk (VaR) since 2022-11-03
Top 10 REN suppliers and percentage of total REN supplies:
Top 10 REN suppliers and borrow usages:
Entire supply positions for top 10 REN suppliers:
Entire borrow positions for top 10 REN suppliers:
Aave V2 Parameter Changes Specification
Gauntlet's simulation engine will continue to adjust risk parameters to protect against outsized market risk while optimizing for capital efficiency.
These parameter recommendations reflect the unique situation of REN in the current market conditions.
The proposal sets the LTV and liquidation threshold ratios by calling
configureReserveAsCollateral on the
LendingPoolConfigurator using the address and parameters specific to each token.
The full list of parameter updates can be found in the forum.
Copyright and related rights waived via CC0.
Gauntlet launched an insolvency refund for Aave that contains a portion of our payment stream that can be clawed back in the event of insolvencies due to market risk. Since our last recommendation there have been no new insolvencies in Aave. Gauntlet’s Insolvency Refund vault is still live and can be seen here 0x7667095Caa12b79fCa489ff6E2198Ca01fDAe057
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.
Your voting info