Aave V2 Interest Rate Curve Changes (4/21)
A proposal to make parameter changes on the Ethereum, Polygon, and Avalanche Aave V2 markets.
For more details, see the full forum post here.
Given the significant shifts in crypto markets, Gauntlet’s platform has evaluated all assets on Aave V2's Ethereum, Polygon, and Avalanche markets and has identified opportunities to adjust parameters for certain assets for the benefit of the protocol. Last November, we proposed interest rate curve changes for the Aave V2 Ethereum market using our interest rate curve optimization framework. Our methodology makes data-informed decisions around setting borrower and supplier interest rates when market conditions require the protocol to reduce risk or when strategic opportunities present themselves to increase protocol revenue without materially impacting risk. This analysis further finetunes the interest rate curves of Aave V2 Ethereum, and extends our methodology to Polygon and Avalanche.
Aave V2 Ethereum
|Optimal||0.8||0.8 → 0.7||0.9 → 0.8||0.8||0.65|
|Variable Slope 1||0.04||0.04||0.04||0.04||0.08 → 0.04|
|Variable Slope 2||0.75 → 1.0||1.0 → 1.5||0.6 → 0.75||0.75 → 1.0||3.0|
|Stable Slope 1||0.0||0.04||0.0||0.02||0.1|
|Stable Slope 2||0.0||1.0||0.0||0.75 → 1.0||3.0|
Aave V2 Avalanche
|Optimal||0.8||0.45 → 0.65||0.45 → 0.65|
|Variable Slope 1||0.04||0.07 → 0.06||0.07 → 0.04|
|Variable Slope 2||0.75 → 1.0||3.0||3.0 → 1.0|
|Stable Slope 1||0.02||0.0||0.0|
|Stable Slope 2||0.75 → 1.0||0.0||0.0|
Aave V2 Polygon
|Optimal||0.9 → 0.8||0.65||0.65||0.45 → 0.65|
|Variable Slope 1||0.04||0.08 → 0.04||0.08 → 0.04||0.07 → 0.06|
|Variable Slope 2||0.6 → 1.0||3.0||1.0||3.0|
|Stable Slope 1||0.02||0.1||0.1||0.1|
|Stable Slope 2||0.6 → 1.0||3.0||1.0||3.0|
This proposal implements the above changes on Aave V2 Ethereum and Polygon via the following pre-deployed payloads:
Aave V2 Avalanche changes will be implemented using a separate steward, deployed here:
Copyright and related rights waived via CC0.
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. This message is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, nor does it constitute an offer to provide investment advisory or other services by Gauntlet Networks Inc. No reference to any specific security constitutes a recommendation to buy, sell or hold that security or any other security. Nothing in this report shall be considered a solicitation or offer to buy or sell any security, future, option or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this report constitutes investment advice or offers any opinion with respect to the suitability of any security, and the views expressed in this report should not be taken as advice to buy, sell or hold any security. The information in this report should not be relied upon for the purpose of investing. In preparing the information contained in this report, we have not taken into account the investment needs, objectives and financial circumstances of any particular investor. This information has no regard to the specific investment objectives, financial situation and particular needs of any specific recipient of this information and investments discussed may not be suitable for all investors. Any views expressed in this report by us were prepared based upon the information available to us at the time such views were written. Changed or additional information could cause such views to change. All information is subject to possible correction. Information may quickly become unreliable for various reasons, including changes in market conditions or economic circumstances.
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Paul Lei, Nick Egan, Watson Fu, Nick Del Zingaro, Jonathan Reem, Nick Cannon, Nathan Lord, Sarah Chen