An SVG of an eye

Proposal overview

Risk Parameter Updates 2021-10-07

Executed

Executed on 

Oct 15, 2021

Simple Summary

A proposal to adjust thirteen (13) total risk parameters across eleven (11) Aave V2 assets including LTV, Liquidation Threshold, and Liquidation Bonus.

Abstract

This proposal is a batch update of three risk parameters to align with the Moderate risk level chosen by the Aave community. These parameter updates are a continuation of Gauntlet's regular parameter recommendations, the latest being AIP-39: Risk Parameter Updates for Aave V2 assets.

Motivation

This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets. Volatility for non-stablecoin crypto assets remains high. As such, we focused on supporting protocol safety for our parameter changes in this cycle.

Adjustments were also made for three liquidation bonus values. These assets (UNI, BAL, LINK) saw increases in liquidity and trading volume and a reduced liquidation recommended value as a result. As always, simulation recommended values seek to maintain capital efficiency and uphold borrow usage levels.

Specification

ParameterCurrent ValueRecommended Value
REN Loan To Value55%50%
SNX Loan To Value20%30%
SNX Liquidation Threshold45.0%55.0%
DPI Loan To Value60%55%
UNI Loan To Value60%55%
UNI Liquidation Bonus10.0%8.0%
YFI Loan To Value45%50%
BAL Liquidation Bonus10.0%8.0%
LINK Liquidation Bonus10.0%7.5%
BAT Liquidation Threshold75.0%80.0%
ENJ Liquidation Threshold60.0%65.0%
MANA Liquidation Threshold65.0%75.0%
ZRX Liquidation Threshold70.0%75.0%

Implementation

The proposal sets the LTV, liquidation bonuses, and liquidation threshold ratios by calling configureReserveAsCollateral on the LendingPoolConfigurator contract at 0x311Bb771e4F8952E6Da169b425E7e92d6Ac45756, using the address and parameters specific to each token.

The full list of parameter updates can be found in the forum.

Copyright

Copyright and related rights waived via CC0.

Your voting info

Voting results

YAE

561,331

AAVE

100.00%

NAY

0

AAVE

0%

Top 10 addresses

Votes

State
Executed

Executed on 

Oct 15, 2021
Quorum
Reached
Current votes

Required

561.33K

320.00K

Differential
Reached
Current differential

Required

561.33K

80,000.00

Total voting power

16,000,000

Proposal details

Created

Block

11 Oct 2021, 22:41 UTC +00:00

13400020

Started

Block

11 Oct 2021, 22:41 UTC +00:00

13400020

Ended

Block

14 Oct 2021, 22:41 UTC +00:00

13419220

Executed

15 Oct 2021, 23:48 UTC +00:00

Author

Nick Cannon (@inkymaze), Watson Fu