Risk Steward Parameter Updates Phase 3
01Summary
This proposal updates Risk Steward parameters across multiple Aave V3 deployments to increase operational efficiency by allowing more responsive risk parameter management. Key changes include doubling the allowable adjustments for Base Variable Borrow Rate, Slope 1, and LTV/Liquidation Threshold parameters, while quadrupling the allowable adjustment for Slope 2. This reduces governance overhead by enabling the Risk Steward to handle more parameter updates without requiring full governance proposals.
- Type
- parameter change
Key changes
- Base Variable Borrow Rate maximum adjustment increased from 0.5% to 1% absolute(high)
- Slope 1 maximum adjustment increased from 0.5% to 1% absolute(high)
- Slope 2 maximum adjustment increased from 5% to 20% absolute(high)
- Loan to Value (LTV) maximum adjustment increased from 0.25% to 0.5% absolute(high)
- Liquidation Threshold maximum adjustment increased from 0.25% to 0.5% absolute(high)
- Supply & Borrow Caps, Debt Ceiling, LST Cap adapter params, Stable price cap, Optimal Point (Kink), and Liquidation Bonus remain unchanged(medium)
Notable concerns
- The proposal significantly expands the Risk Steward's adjustment authority across multiple parameters, which could allow more rapid market-responsive changes but may reduce direct governance oversight of risk parameter modifications
Generated by Kvorum
02Description
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
| Parameter | Current | Proposed |
|---|---|---|
| Supply & Borrow Caps | 100% relative | (no change) |
| Debt Ceiling | 20% relative | (no change) |
| LST Cap adapter params | 5% relative | (no change) |
| Stable price cap | 0.5% relative | (no change) |
| Base Variable Borrow Rate | 0.5% absolute | 1% absolute |
| Slope 1 | 0.5% absolute | 1% absolute |
| Slope 2 | 5% absolute | 20% absolute |
| Optimal Point (Kink) | 3% absolute | (no change) |
| Loan to Value (LTV) | 0.25% absolute | 0.5% absolute |
| Liquidation Threshold | 0.25% absolute | 0.5% absolute |
| Liquidation Bonus | 0.5% absolute | (no change) |
(no change to minimum delay)
References
- Implementation: AaveV3Ethereum, AaveV3EthereumLido, AaveV3EthereumEtherFi, AaveV3Polygon, AaveV3Avalanche, AaveV3Optimism, AaveV3Arbitrum, AaveV3Metis, AaveV3Gnosis, AaveV3Base, AaveV3Scroll, AaveV3BNB, AaveV3ZkSync, AaveV3Linea, AaveV3Celo, AaveV3Sonic
- Tests: AaveV3Ethereum, AaveV3EthereumLido, AaveV3EthereumEtherFi, AaveV3Polygon, AaveV3Avalanche, AaveV3Optimism, AaveV3Arbitrum, AaveV3Metis, AaveV3Gnosis, AaveV3Base, AaveV3Scroll, AaveV3BNB, AaveV3ZkSync, AaveV3Linea, AaveV3Celo, AaveV3Sonic
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal description lists specific relative/absolute risk-parameter changes (Base Variable Borrow Rate, Slope 1, Slope 2, LTV, Liquidation Threshold) across many Aave V3 markets on 16 different chains, referencing distinct payload contracts per network. However, the decoded calldata only exposes three generic execute() fallback calls, all on chain 0x1 (Ethereum), targeting what are very likely the AaveV3Ethereum, AaveV3EthereumLido, and AaveV3EthereumEtherFi payload contracts named first in the description's reference list. Because these are fallback/execute() calls with no decoded internal arguments, the actual parameter values being set (e.g., new borrow rate slopes, LTV, liquidation threshold) cannot be verified directly from the calldata provided — the real changes are encoded inside the payload contracts' bytecode, which is outside the scope of this decoded action set. This is a structural limitation of the decoding, not necessarily evidence of a mismatch: it is standard for Aave governance proposals to execute a small number of on-chain payload contracts on the primary governance chain, with cross-chain markets handled via separate bridged execution flows not necessarily captured in this three-action list. Given the opacity of the calldata (no decoded parameters to compare against the prose's numeric claims), confidence in this comparison is low. No concrete value, target, or omission discrepancy can be confirmed, so the assessment defaults to consistent, but this should not be read as a strong endorsement — it reflects insufficient decoded detail rather than confirmed alignment. A reviewer wanting certainty should inspect the actual payload contract source code linked in the proposal to confirm the numeric changes match the specification table exactly.
Generated by Kvorum
04Actions
- Target
- 0xc4c3…33d1
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
- Target
- 0xb609…e410
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
- Target
- 0x6a7b…b3df
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 570x57ab…2922 | For | 256K | 0.00% | — | 2y ago |
| 2E0x2e21…f21a | For | 124.3K | 0.00% | — | 2y ago |
| EC0xecc2…6ac9 | For | 46.6K | 0.00% | — | 2y ago |
| B90xb933…8dd1 | For | 39.7K | 0.00% | — | 2y ago |
| 3D0x3ddc…05b0 | For | 30.1K | 0.00% | — | 2y ago |
| 870x8787…ea52 | For | 24.7K | 0.00% | — | 2y ago |
| EZezr3al.eth0x8659…7d0e | For | 12.4K | 0.00% | — | 2y ago |
| 8B0x8b37…2a22 | For | 10.9K | 0.00% | — | 2y ago |
| 2C0x2cc1…4df1 | For | 4.8K | 0.00% | — | 2y ago |
| 080x0865…24ce | For | 2K | 0.00% | — | 2y ago |
| B30xb356…c826 | For | 480 | 0.00% | — | 2y ago |
| F10xf13c…6dd3 | For | 174.2 | 0.00% | — | 2y ago |
| 0B0x0ba4…2b9d | For | 99.9 | 0.00% | — | 2y ago |
| EC0xec35…939d | For | 7.5 | 0.00% | — | 2y ago |
| 430x43dd…40e0 | For | 6.9 | 0.00% | — | 2y ago |
| 960x96d3…9fb1 | For | 3.5 | 0.00% | — | 2y ago |
| 050x0579…4048 | For | 3.1 | 0.00% | — | 2y ago |
| 2F0x2f2f…f78a | For | 2 | 0.00% | — | 2y ago |
| 620x6276…b4e8 | For | 1 | 0.00% | — | 2y ago |
| 010x019e…2ee3 | For | 0.3 | 0.00% | — | 2y ago |
| 090x0901…2306 | Against | 0.1 | 0.00% | — | 2y ago |
| 580x58f2…94cc | For | 0 | 0.00% | — | 2y ago |
| 7F0x7f21…31e0 | For | 0 | 0.00% | — | 2y ago |
| 200x200d…49e4 | For | 0 | 0.00% | — | 2y ago |
| C40xc4cd…47bc | For | 0 | 0.00% | — | 2y ago |
| 380x38dc…472d | For | 0 | 0.00% | — | 2y ago |
| 150x1523…080f | For | 0 | 0.00% | — | 2y ago |
| 4D0x4d12…7d7c | For | 0 | 0.00% | — | 2y ago |
| BE0xbef8…9999 | For | 0 | 0.00% | — | 2y ago |
| D70xd712…1366 | For | 0 | 0.00% | — | 2y ago |
| 7A0x7a04…17a8 | For | 0 | 0.00% | — | 2y ago |
| 140x1475…6e15 | For | 0 | 0.00% | — | 2y ago |
| A00xa0d0…604a | For | 0 | 0.00% | — | 2y ago |
| A60xa6ac…2bf3 | For | 0 | 0.00% | — | 2y ago |
| E60xe6b8…452d | For | 0 | 0.00% | — | 2y ago |
| 210x21ff…c5a8 | For | 0 | 0.00% | — | 2y ago |
| EE0xee2a…58a7 | For | 0 | 0.00% | — | 2y ago |
| D20xd248…32ae | For | 0 | 0.00% | — | 2y ago |
| 930x93e0…f6ee | For | 0 | 0.00% | — | 2y ago |
| AC0xacc9…0b28 | For | 0 | 0.00% | — | 2y ago |
| 950x95d2…88f9 | For | 0 | 0.00% | — | 2y ago |
| E80xe8ee…0877 | For | 0 | 0.00% | — | 2y ago |
| ED0xed4c…9508 | For | 0 | 0.00% | — | 2y ago |
07Forum
No forum thread is confidently linked to this proposal.
08Similar proposals
- aavecanceledRisk Steward Parameter Updates Phase 398%
- aaveexecutedChaos Labs Risk Parameter Updates - LTV and LT Alignment88%
- aaveexecutedRisk Parameters for DAI Update88%
- aaveexecutedUpdate ETH EMode and WETH Risk Params on Aave v3 Ethereum, Optimism and Arbitrum85%
- aaveexecutedChaos Labs Risk Parameter Updates AaveV384%
- aaveexecutedDecrease Slope1 Parameter for Stablecoins on Aave V384%
- aaveexecutedUpdate legacy guardian83%
- aaveexecutedConfiguration maintenance83%
- aaveexecutedStablecoinIRUpdates83%
- aaveexecutedStablecoins Interest Rate Curve Update82%