Proposal overview
Risk Parameter Updates for Aave v2 Ethereum Liquidty Pool
Simple Summary
In response to recent market events and resulting discussion on the governance forum, Llama and Chaos Labs propose to make a series of parameter changes to the Ethereum Aave v2 Liquidity Pool.
Abstract
This proposal presents an alternative pathway forward to AIP-121. The community can elect to Disable Borrowing whilst retaining the ability to Deposits assets across the majority of Reserves rather than Freezing as outlined in AIP-121.
This proposal is a collaborative effort between Llama and Chaos Labs and reflects the communities governance forum discussion.
Motivation
In response to recent market events and the continued contraction of liquidity across markets, this proposal seeks to reduce the risk profile across many higher volatile assets. AIP-121 presents an opportunity to Freeze many Reserves, whereas this proposal intends to Disable Borrowing whilst retaining the ability to deposit assets.
AIP-121 is a more conservative response relative to this proposal. It is likely, LTV and LT thresholds for highly liqudity assets will also require amending in the near future. This will be managed via a separate submission.
Specification
The following risk parameter proposal are presented below:
Implementation
This proposal will reconfigure the following asset Reserves:
- YFI
- CRV
- ZRX
- MANA
- 1INCH
- BAT
- sUSD
- ENJ
- GUSD
- AMPL
- RAI
- USDP
- LUSD
- xSUSHI
- DPI
- renFIL
- MKR
- ENS
- LINK
- UNI
- SNX
This proposal is written in an atomic manner that will unfreeze reserves in case AIP-121 gets executed before.
To achieve this, freezeReserve(address asset)
, unfreezeReserve(address asset)
and disableBorrowingOnReserve(address asset)
will be performed via the PoolConfigurator for each asset respectively to ensure a predictable final state.
POOL_CONFIGURATOR.freezeReserve(address asset)
POOL_CONFIGURATOR.unfreezeReserve(address asset)
POOL_CONFIGURATOR.disableBorrowingOnReserve(address asset)
Implementation can be found here
Copyright
Copyright and related rights waived via CC0.
Your voting info
Voting results
YAE
647,906
AAVE99.82%
NAY
1,152
AAVE0.18%
Votes
Executed on
Nov 30, 2022Required
647.90K
320.00K
Required
646.75K
80,000.00
16,000,000
Proposal details
Block
25 Nov 2022, 16:51 UTC +00:00
16048305
Block
26 Nov 2022, 16:58 UTC +00:00
16055505
Block
29 Nov 2022, 08:58 UTC +00:00
16074705
30 Nov 2022, 19:03 UTC +00:00
Llamaxyz & Chaos Labs (defijesus, Matthew Graham, Omer Arie Goldberg)