An SVG of an eye

Proposal overview

Enable FEI as Collateral on Aave V2

Executed

Executed on 

Jan 23, 2022

Simple Summary

A proposal to enable FEI as a collateral asset on Aave V2.

Abstract

This proposal is a continuation of Gauntlet's Dynamic Risk Parameters engagement which includes enabling assets as collateral on Aave V2.

Specification

Gauntlet's simulation analysis shows that it is safe to enable FEI as a collateral asset on Aave V2 with the below risk parameters. The initial parameters for FEI will be an LTV of 50%, a Liquidation Threshold of 60%, and a Liquidation Bonus of 6.5%. Most of the stablecoins that can be used as collateral on Aave are more liquid, and our platform’s analysis conservatively recommends initially capping the amount of collateral that can be liquidatable to the average daily trading volume of FEI. If user behavior and market conditions over the coming months continue to show safe conditions for increasing capital efficiency on FEI, we shall recommend ramping up the LTV and Liquidation Threshold incrementally.

Implementation

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

Forum Discussion.

Copyright

Copyright and related rights waived via CC0.

Your voting info

Voting results

YAE

441,747

AAVE

100.00%

NAY

0

AAVE

0%

Top 10 addresses

Votes

State
Executed

Executed on 

Jan 23, 2022
Quorum
Reached
Current votes

Required

441.74K

320.00K

Differential
Reached
Current differential

Required

441.74K

80,000.00

Total voting power

16,000,000

Proposal details

Created

Block

18 Jan 2022, 17:37 UTC +00:00

14030921

Started

Block

18 Jan 2022, 17:37 UTC +00:00

14030921

Ended

Block

21 Jan 2022, 17:37 UTC +00:00

14050121

Executed

23 Jan 2022, 02:19 UTC +00:00

Author

Paul Lei, Jonathan Reem, Nick Cannon, Watson Fu