KVORUM
aaveSource: Aave governance v3 · #284

Risk Steward Parameter Updates Phase 3

canceledby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Proposal to expand Risk Steward parameter adjustment capabilities across 16 Aave V3 deployments by increasing allowed modification ranges for borrowing rates, rate slopes, and collateral parameters (LTV and liquidation thresholds) to reduce governance overhead and enable more responsive risk management.

Type
parameter change

Key changes

  • Base Variable Borrow Rate adjustment range increased from 0.5% absolute to 1% absolute(high)
  • Slope 1 adjustment range increased from 0.5% absolute to 1% absolute(high)
  • Slope 2 adjustment range increased from 5% absolute to 20% absolute(high)
  • Loan to Value (LTV) adjustment range increased from 0.25% absolute to 0.5% absolute(medium)
  • Liquidation Threshold adjustment range increased from 0.25% absolute to 0.5% absolute(medium)
  • Supply & Borrow Caps, Debt Ceiling, LST Cap adapter params, Stable price cap, Optimal Point (Kink), and Liquidation Bonus remain unchanged(low)

Notable concerns

  • Expanding Risk Steward parameter modification ranges may increase protocol risk if adjustments deviate significantly from intended bounds
  • Larger adjustment ranges for critical borrowing rate parameters (Slope 2 increased 4x from 5% to 20% absolute) could have substantial market impact
ContractsAaveV3EthereumAaveV3EthereumLidoAaveV3EthereumEtherFiAaveV3PolygonAaveV3AvalancheAaveV3OptimismAaveV3ArbitrumAaveV3MetisAaveV3GnosisAaveV3BaseAaveV3ScrollAaveV3BNBAaveV3ZkSyncAaveV3LineaAaveV3CeloAaveV3Sonic
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

306 words

Simple Summary

This proposal aims to update the Risk Steward parameters to enhance the efficiency of risk parameter management and reduce governance overhead.

Motivation

The Risk Steward mechanism has proven to be an effective tool for managing risk parameters without requiring full governance proposals. After several months of successful operation, we propose updating the parameters to allow for more responsive risk management while maintaining appropriate safety constraints.

Technical service providers spend significant time reviewing risk parameter update AIPs, which could be more efficiently handled through the Risk Steward mechanism. With well-defined processes in place and months of successful operation, we can safely expand the scope of parameter adjustments allowed through this system.

Specification

ParameterCurrentProposed
Supply & Borrow Caps100% relative(no change)
Debt Ceiling20% relative(no change)
LST Cap adapter params5% relative(no change)
Stable price cap0.5% relative(no change)
Base Variable Borrow Rate0.5% absolute1% absolute
Slope 10.5% absolute1% absolute
Slope 25% absolute20% absolute
Optimal Point (Kink)3% absolute(no change)
Loan to Value (LTV)0.25% absolute0.5% absolute
Liquidation Threshold0.25% absolute0.5% absolute
Liquidation Bonus0.5% absolute(no change)

(no change to minimum delay)

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorum

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04Actions

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05Tally

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07Forum

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