Generalized LT/LTV Reductions on Aave V3 Step 2
01Summary
Phase II of stablecoin risk parameter reductions across Aave V3 markets on 9 chains. Reduces Loan-to-Value (LTV) and Liquidation Threshold (LT) for stablecoins including USDC, USDT, and related variants to harmonized levels (75% LTV, 78% LT). DAI and sDAI excluded per separate proposal. Expected new liquidations total approximately $49,500 across all chains.
- Type
- parameter change
Key changes
- Reduce USDC LTV from 76% to 75% and LT from 79% to 78% across Ethereum, Gnosis, Base, Scroll, Polygon, BNB, and Optimism(high)
- Reduce USDT LTV from 76% to 75% and LT from 79% to 78% across Ethereum, Polygon, Arbitrum, Optimism, and BNB(high)
- Reduce USDC.e LTV from 76% to 75% and LT from 79% to 78% on Polygon and Arbitrum; reduce from 78% to 75% LTV and 84% to 80% LT on Optimism(high)
- Reduce USDbC LTV from 76% to 75% and LT from 79% to 78% on Base(medium)
- Increase sDAI LTV from 63% to 75% and LT from 77% to 78% on Ethereum and Gnosis(medium)
- Reduce USDC LTV from 80% to 75% and LT from 85% to 81% on Avalanche(high)
Notable concerns
- Avalanche USDC reduction triggers largest new liquidations at $23,700
- Optimism USDC.e reduction triggers $5,800 in new liquidations
- Polygon USDC.e reduction triggers $4,700 in new liquidations
- DAI and sDAI excluded from this proposal due to separate risk parameter adjustment proposal
Generated by Kvorum
02Description
Simple Summary
Reduce stablecoin LTs and LTVs across all markets.
Motivation
Following a successful implementation of Phase I of our plan to reduce stablecoin LTs and LTVs, we would like to propose the next phase. Additionally, we have updated our recommended final state for all associated stablecoins, with LTVs and LTs harmonized across all chains at 75% and 78%, respectively.
Please note that given the proposal to adjust DAI and sDAI risk parameters, it has been excluded from this proposal.
Specification
Ethereum
| Asset | Current LTV | Recommended LTV | Current LT | Recommended LT | New Liquidations |
|---|---|---|---|---|---|
| USDC | 76% | 75% | 79% | 78% | $2,600 |
| USDT | 76% | 75% | 79% | 78% | $0 |
| sDAI | 63% | 75% | 77% | 78% |
Gnosis
| Asset | Current LTV | Recommended LTV | Current LT | Recommended LT | New Liquidations |
|---|---|---|---|---|---|
| USDC | 76% | 75% | 79% | 78% | $0 |
| sDAI | 63% | 75% | 77% | 78% |
Base
| Asset | Current LTV | Recommended LTV | Current LT | Recommended LT | New Liquidations |
|---|---|---|---|---|---|
| USDC | 76% | 75% | 79% | 78% | $3.80 |
| USDbC | 76% | 75% | 79% | 78% | $0.40 |
Scroll
| Asset | Current LTV | Recommended LTV | Current LT | Recommended LT | New Liquidations |
|---|---|---|---|---|---|
| USDC | 76% | 75% | 79% | 78% | $103 |
Polygon
| Asset | Current LTV | Recommended LTV | Current LT | Recommended LT | New Liquidations |
|---|---|---|---|---|---|
| USDC | 76% | 75% | 79% | 78% | $0 |
| USDT | 76% | 75% | 79% | 78% | $833 |
| USDC.e | 76% | 75% | 79% | 78% | $4,700 |
Arbitrum
| Asset | Current LTV | Recommended LTV | Current LT | Recommended LT | New Liquidations |
|---|---|---|---|---|---|
| USDC | 76% | 75% | 79% | 78% | $0 |
| USDT | 76% | 75% | 79% | 78% | $5.30 |
| USDC.e | 76% | 75% | 79% | 78% | $1,000 |
Optimism
| Asset | Current LTV | Recommended LTV | Current LT | Recommended LT | New Liquidations |
|---|---|---|---|---|---|
| USDC | 76% | 75% | 79% | 78% | $3,700 |
| USDT | 76% | 75% | 79% | 78% | $63 |
| USDC.e | 78% | 75% | 84% | 80% | $5,800 |
BNB
| Asset | Current LTV | Recommended LTV | Current LT | Recommended LT | New Liquidations |
|---|---|---|---|---|---|
| USDC | 76% | 75% | 79% | 78% | $3,700 |
| USDT | 76% | 75% | 79% | 78% | $0 |
Avalanche
| Asset | Current LTV | Recommended LTV | Current LT | Recommended LT | New Liquidations |
|---|---|---|---|---|---|
| USDC | 80% | 75% | 85% | 81% | $23,700 |
References
- Implementation: AaveV3Ethereum, AaveV3Polygon, AaveV3Avalanche, AaveV3Optimism, AaveV3Arbitrum, AaveV3Base, AaveV3Gnosis, AaveV3Scroll, AaveV3BNB
- Tests: AaveV3Ethereum, AaveV3Polygon, AaveV3Avalanche, AaveV3Optimism, AaveV3Arbitrum, AaveV3Base, AaveV3Gnosis, AaveV3Scroll, AaveV3BNB
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal description is detailed and specific, listing exact LTV/LT changes for USDC, USDT, USDC.e, USDbC, and sDAI across nine networks (Ethereum, Gnosis, Base, Scroll, Polygon, Arbitrum, Optimism, BNB, Avalanche). However, the decoded on-chain action set contains only a single top-level call: execute() on a payload contract on Ethereum mainnet, with no arguments. This is the standard pattern for Aave cross-chain governance proposals, where the on-chain payload contract internally performs the granular per-market configurator calls (and dispatches cross-chain messages to other networks) via delegatecall/internal logic that is not exposed in the decoded top-level calldata. Because the decoded action provides no visibility into the specific parameter changes actually being executed, I cannot verify or refute the individual LTV/LT figures, target markets, or the sDAI exception claim against the calldata. Given that this opacity is expected and typical for this proposal type (referencing multiple per-chain Solidity payload files matching the described chains), I do not treat the lack of granular decoding as a discrepancy, but confidence in a line-by-line comparison is low. No contradictions, extra actions, or omissions can be substantiated from the available data.on the DAO.
Generated by Kvorum
04Actions
- Target
- 0x7f9c…5e54
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
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07Forum
No forum thread is confidently linked to this proposal.
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