KVORUM
aaveSource: Aave governance v3 · #384

pyUSD Parameters Optimization

executedOct 7, 2025, 12:58 AM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Updates pyUSD reserve configuration on Ethereum v3 Core by reducing Reserve Factor from 20% to 10%, increasing Optimal Utilization from 80% to 90%, reducing Slope 1 from 10.5% to 6.5%, and disabling pyUSD as collateral (LTV from 75% to 0%) to prepare for a potential PayPal incentive campaign.

Type
parameter change

Key changes

  • Reserve Factor reduced from 20% to 10% - routes larger portion of borrower interest to depositors(medium)
  • Optimal Utilization increased from 80% to 90% - better reflects borrow and supply dynamics(medium)
  • Slope 1 reduced from 10.5% to 6.5% - aligns interest rate curve with other stablecoins and reduces borrow costs(medium)
  • LTV set to 0% from 75% - disables pyUSD as collateral to minimize oracle risks and reduce incentive-driven looping(high)

Notable concerns

  • Disabling collateral functionality removes a feature previously available to users
  • Changes made in anticipation of PayPal incentive campaign which is not yet confirmed
ContractsAave V3 Ethereum Core - pyUSD Reserve
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

251 words

Simple Summary

This proposal updates the pyUSD reserve configuration on Ethereum v3 Core.

Motivation

This publication proposes aligning the Reserver Factor and Uoptimal for the pyUSD Reserve with various other stables ahead of a potential incentive campaign from PayPal.

The key changes include:

  • Adjusting pyUSD Reserve Factor (RF) from 20% to 10%: With <$15M in liquidity within the Reserve, decreasing the RF routes a larger portion of the interest paid by users who borrow pyUSD to users who deposit pyUSD.
  • Adjusting Optimal Utilization (Uoptimal) from 80% to 90%: We recommend to increasing the Uoptimal of pyUSD, to better reflect the borrow and supply dynamism for these assets.
  • Reducing Slope 1 from 10.5% to 6.5%: Aligns pyUSD’s interest rate curve with other stablecoins in Aave v3 Ethereum, moderating borrow costs up to the kink and improving competitiveness.
  • Setting Loan-to-Value (LTV) from 75% to 0%: Disables pyUSD as collateral to minimize oracle-related risks and reduce incentive-driven looping, ensuring healthier market growth.

Specification

The following pyUSD Reserve parameters are to be updated:

ParametersCurrent ValueUpdated Value
AssetPYUSDPYUSD
UOptimal80%90%
Reserve Factor20%10%
Slope 110.5%6.5%
LTV75%0%

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorummedium confidenceclaude-sonnet-5
Consistent

The proposal follows the standard Aave v3 'payload contract' governance pattern: a single on-chain action calls execute() on a purpose-built payload contract (0x4edc...58d1e353) rather than exposing individual parameter-setting calls in the top-level calldata. This is consistent with the referenced implementation link (AaveV3Ethereum_PyUSDParametersOptimization), which is the standard BGD Labs pattern for reserve parameter updates. Because the actual RF/Uoptimal/Slope1/LTV values are encoded inside the payload contract's bytecode rather than passed as decoded arguments in this single execute() call, I cannot line-item verify each numeric claim (20%→10% RF, 80%→90% Uoptimal, 10.5%→6.5% Slope1, 75%→0% LTV) directly against decoded calldata arguments. However, this opacity is expected and routine for this proposal type — it is not itself evidence of a mismatch, and the target address plausibly corresponds to the linked implementation contract. Given the single, expected 'execute()' action and no contradictory signals, I find no discrepancy between the description and the decoded action, but I mark confidence as medium rather than high because the underlying parameter values are not independently visible in the calldata provided.}}, discrepancies:[]}, wait - I need to output valid JSON only.,

Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
Review the decoded actions ↗

04Actions

1 total
#0fallback()chain 0x1
Target
0x4edc…f353
Value
0 wei
Function
fallback()
Arguments
{}
Calldata

05Tally

Summed from votes

Voters30
VP participating887.9K
Outcome (current)For
Current support100%

06Voters

30 total
Filter:
VoterChoice% of totalRationale
EA0xea0c…6b5aFor333K37.50%—1y ago
570x57ab…2922For279.2K31.45%—1y ago
EZezr3al.eth0x8659…7d0eFor136.2K15.34%—1y ago
B90xb933…8dd1For39.6K4.46%—1y ago
EC0xecc2…6ac9For26K2.93%—1y ago
870x8787…ea52For25.7K2.89%—1y ago
3D0x3ddc…05b0For20.1K2.27%—1y ago
8B0x8b37…2a22For10.3K1.16%—1y ago
3E0x3e32…c4d0For7.6K0.86%—1y ago
2C0x2cc1…4df1For6.7K0.75%—1y ago
0E0x0e00…ccfcFor1.1K0.12%—1y ago
440x4444…34b3For6820.08%—1y ago
B30xb356…c826For4800.05%—1y ago
4D0x4d26…7017For397.40.04%—1y ago
A50xa54f…0f31For264.20.03%—1y ago
F10xf13c…6dd3For236.30.03%—1y ago
080x0865…24ceFor149.40.02%—1y ago
6E0x6eed…91d3For115.40.01%—1y ago
270x2748…ac26For16.10.00%—1y ago
430x43dd…40e0For7.90.00%—1y ago
F70xf7fb…dc1aFor60.00%—1y ago
7E0x7e6c…73ebFor5.60.00%—1y ago
BB0xbb86…3527For4.80.00%—1y ago
5D0x5de5…e69cFor3.20.00%—1y ago
050x0579…4048For10.00%—1y ago
010x019e…2ee3For0.30.00%—1y ago
010x0100…7cc9For0.20.00%—1y ago
160x168f…7400For0.10.00%—1y ago
2F0x2f2f…f78aFor00.00%—1y ago
4D0x4d4a…1bdfFor00.00%—1y ago
Showing 30

07Forum

No forum thread is confidently linked to this proposal.