KVORUM
aaveSource: Aave governance v3 · #260

Adjust Aave Polygon V3 Risk Parameters

executedMar 7, 2025, 12:49 PM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

This proposal adjusts AIP-254 by reintroducing LTV (loan-to-value) for non-bridged stablecoins (USDT and USDC) on Aave Polygon V3, raising their LTV from 0% to 70% each. It also makes stablecoins non-borrowable in the stablecoin E-mode category and slightly reduces E-mode LTV/LT parameters to reflect lower stablecoin trading volume.

Type
parameter change

Key changes

  • Increase USDT LTV on Polygon V3 from 0% to 70%(high)
  • Increase USDC LTV on Polygon V3 from 0% to 70%(high)
  • Make all stablecoins non-borrowable in stablecoin E-mode category(medium)
  • Reduce stablecoin E-mode LTV from 93% to 91.25%(low)
  • Reduce stablecoin E-mode LT from 95% to 94.25%(low)

Notable concerns

  • Parameter changes follow AIP-254 adjustment for non-bridged stablecoins with no rehypothecation risk
  • Stablecoin E-mode borrowing restrictions implemented due to insufficient stablecoin/stablecoin trading volume
ContractsAaveV3Polygon
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

238 words

Simple Summary

This proposal addendum seeks governance approval for adjustment of the AIP-254 to reintroduce LTV for non-bridged stablecoins in Aave Polygon V3.

Motivation

Based on service provider and community feedback, this proposal aims to adjust AIP-254 to reintroduce LTV for non-bridged stablecoins in Aave Polygon V3, as they carry no rehypothecation risk. It also reduces stablecoin E-mode LT in Aave Polygon V3 due to insufficient stablecoin/stablecoin trading volume to justify the current risk level.

USDT is scheduled to migrate to the USDT0 standard soon, as recently implemented on networks like Arbitrum. To promote stablecoin diversity and taking an optimistic view on the reduction of bridge risk for this asset, this proposal aims to restore an LTV for USDT.

Specification

Aave Polygon V3 stablecoins suggested risk parameters

DeploymentAssetCurrent LTVProposed LTV
Polygon V3USDT0%70%
Polygon V3USDC0%70%

Aave Polygon Stablecoin E-mode

  • Make all stablecoins non-borrowable in the stablecoin E-mode category
Current LTVProposed LTVCurrent LTProposed LT
93%91.25%95%94.25%

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

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04Actions

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05Tally

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07Forum

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