AAVE

Proposal overview

GHST Polygon V3 Soft Freeze

Executed

Executed on 

Mar 14, 2023

Simple Summary

This AIP presents the Aave governance with an opportunity to change GHST risk parameters for Aave Polygon V3 Liquidity pool.

Motivation

GHST is the native asset of the Aavegotchi ecosystem. This ARFC proposes new risk parameters for GHST following the deprecation of the "Bonding Curve," which created a new risk profile for the asset and is expected to increase its volatility.

Previously, GHST was minted and burned on an ETH L1 bonding curve contract, which lowered its volatility. However, with the deprecation of the curve, a "Soft Freeze" of the GHST asset on Aave V3 Polygon is proposed to allow for a conservative reaction to this new risk profile.

Once the bonding curve is deprecated and more market data is available on the risk profile of GHST, Aave governance will have in a few weeks/months a stronger basis to assess and provide updated risk parameters for the GHST asset.

Specification

Ticker: GHST (GHST)

Contract Address: 0x385Eeac5cB85A38A9a07A70c73e0a3271CfB54A7

Risk ParameterCurrent ValueProposed Value
Isolation ModeNONO
Enable BorrowYESNO
Enable CollateralYESYES
Loan To Value25%0%
Liquidation Threshold45%45%
Liquidation Bonus15%15%
Reserve Factor20%20%
Liquidation Protocol Fee10%10%
Borrow Cap3.23M220k
Supply Cap5.88M4.65M
Debt CeilingN/AN/A
contract GHSTV3RiskParamPayload is IProposalGenericExecutor {
  address public constant GHST = AaveV3PolygonAssets.GHST_UNDERLYING;
  uint256 public constant GHST_SUPPLY_CAP = 4_650_000;
  uint256 public constant GHST_BORROW_CAP = 220_000;
  uint256 public constant GHST_LTV = 0;
  uint256 public constant GHST_LIQ_THRESHOLD = 4500;
  uint256 public constant GHST_LIQ_BONUS = 11500;
  bool public constant GHST_BORROWING_ENABLED = false;

  function execute() external {
    AaveV3Polygon.POOL_CONFIGURATOR.setSupplyCap(GHST, GHST_SUPPLY_CAP);
    AaveV3Polygon.POOL_CONFIGURATOR.setBorrowCap(GHST, GHST_BORROW_CAP);
    AaveV3Polygon.POOL_CONFIGURATOR.setReserveBorrowing(GHST, GHST_BORROWING_ENABLED);
    AaveV3Polygon.POOL_CONFIGURATOR.configureReserveAsCollateral({
      asset: GHST,
      ltv: GHST_LTV,
      liquidationThreshold: GHST_LIQ_THRESHOLD,
      liquidationBonus: GHST_LIQ_BONUS
    });
  }
}

References

A list of relevant links like for this proposal e.g.

Security Considerations

The proposal Payload was reviewed by Bored Ghost Developing.

Copyright

Copyright and related rights waived via CC0.

Your voting info

Voting results

YAE

620,187

AAVE

100.00%

NAY

0

AAVE

0%

Votes

State
Executed

Executed on 

Mar 14, 2023
Quorum
Reached
Current votes

Required

620.18K

320.00K

Differential
Reached
Current differential

Required

620.18K

80,000.00

Total voting power

16,000,000

Proposal details

Created

Block

9 Mar 2023, 21:51 UTC +00:00

16793430

Started

Block

10 Mar 2023, 22:16 UTC +00:00

16800630

Ended

Block

13 Mar 2023, 14:16 UTC +00:00

16819830

Executed

14 Mar 2023, 15:06 UTC +00:00

Author

Marc Zeller (@marczeller), Aave-Chan initiative

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