KVORUM
aaveSource: Aave governance v3 · #11

Update ETH EMode and WETH Risk Params on Aave v3 Ethereum, Optimism and Arbitrum

executedJan 30, 2024, 12:55 PM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Update risk parameters for ETH-correlated assets (wstETH, rETH, cbETH) and WETH across Ethereum, Optimism, and Arbitrum to increase capital efficiency. Changes include: ETH LST E-Mode LTV increases from 90% to 93% and liquidation thresholds from 93% to 95% across all three chains; Arbitrum liquidation bonus decreases from 2% to 1%; WETH optimal ratio increases from 80% to 90% on all three chains.

Type
parameter change

Key changes

  • ETH LST E-Mode LTV increased from 90% to 93% on Ethereum, Optimism, and Arbitrum(high)
  • ETH LST E-Mode Liquidation Threshold increased from 93% to 95% on Ethereum, Optimism, and Arbitrum(high)
  • Arbitrum ETH LST E-Mode Liquidation Bonus decreased from 2% to 1%(medium)
  • WETH Optimal Ratio increased from 80% to 90% on Ethereum, Optimism, and Arbitrum(high)

Notable concerns

  • Higher LTV and liquidation threshold increases risk exposure for borrowers in E-Mode
  • Reduced liquidation bonus on Arbitrum may impact liquidator incentives
ContractsAaveV3EthereumAaveV3OptimismAaveV3ArbitrumwstETHrETHcbETHWETH
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
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02Description

377 words

Simple Summary

This AIP proposes to update ETH LSTs (wstETH, rETH, cbETH) and WETH risk parameters on the Aave V3 Ethereum Mainnet, OP Mainnet and Arbitrum.

Motivation

We propose updating the ETH LSTs and WETH risk parameters to be optimal and competitive in the current market landscape. This will maintain Aave’s position as the prime liquidity protocol by increasing our protocol attractiveness for users looking to maximize their capital efficiency.

Specification

The proposed changes update some risk parameters on ETH LSTs and WETH.

ETH correlated E-Mode Ethereum

Update ETH-correlated E-Mode parameters with the following values.

Risk ParameterCurrent ValueProposed Value
Loan To Value (LTV)90%93%
Liquidation Threshold93%95%

We propose no changes to the ETH LSTs non-E-Mode parameters.

ETH correlated E-Mode Arbitrum

Update ETH-correlated E-Mode parameters with the following values.

Risk ParameterCurrent ValueProposed Value
Loan To Value (LTV)90%93%
Liquidation Threshold93%95%
Liquidation Bonus2%1%

We propose no changes to the ETH LSTs non-E-Mode parameters.

ETH correlated E-Mode Optimism

Risk ParameterCurrent ValueProposed Value
Loan To Value (LTV)90%93%
Liquidation Threshold93%95%

We propose no changes to the stETH non-E-Mode parameters.

WETH Ethereum

Risk ParameterCurrent ValueProposed Value
Optimal Ratio80%90%

Other parameters will remain unchanged.

WETH Arbitrum

Risk ParameterCurrent ValueProposed Value
Optimal Ratio80%90%

Other parameters will remain unchanged.

WETH Optimism

Risk ParameterCurrent ValueProposed Value
Optimal Ratio80%90%

Other parameters will remain unchanged

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorumlow confidenceclaude-sonnet-5
Minor discrepancy

Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
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04Actions

1 total
#0fallback()chain 0x1
Target
0x9839…3a1a
Value
0 wei
Function
fallback()
Arguments
{}
Calldata

05Tally

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07Forum

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