V2 Deprecation Plan, 2024.01.02
01Summary
Proposal to reduce Liquidation Thresholds on 6 frozen assets in Aave V2 Ethereum (CRV, ENS, LINK, MKR, UNI, ZRX) as part of the v2 deprecation framework. This will affect 39 accounts with approximately $14K in cumulative liquidations. The reductions are calibrated to minimize unnecessary liquidations while progressing the deprecation plan.
- Type
- parameter change
Key changes
- CRV Liquidation Threshold reduced from 0.25 to 0.18(medium)
- ENS Liquidation Threshold reduced from 0.30 to 0.24(medium)
- LINK Liquidation Threshold reduced from 0.75 to 0.74(low)
- MKR Liquidation Threshold reduced from 0.26 to 0.18(medium)
- UNI Liquidation Threshold reduced from 0.40 to 0.20(high)
- ZRX Liquidation Threshold reduced from 0.18 to 0.12(medium)
Notable concerns
- 39 accounts will become eligible for liquidation upon approval
- Approximately $14K in cumulative liquidations expected
- Parameter reductions calibrated with 2-4% margin from thresholds that would trigger more substantial liquidations
Generated by Kvorum
02Description
Simple Summary
A proposal to reduce Liquidation Thresholds (LT) on Aave V2 Ethereum.
Motivation
In accordance with the v2 deprecation framework, Gauntlet and Chaos Labs advise implementing the subsequent parameter changes to the frozen assets on Aave v2 Ethereum.
Specification
The recommendations below suggest an LT configuration that optimizes reductions without significantly increasing the number of accounts eligible for liquidation. The proposed values are set at a margin of ~2-4% from the closest LT figure, which would trigger more substantial liquidations.
This will affect 39 accounts, leading to a cumulative of $14K in value liquidated.
| Asset | Current LT | New LT |
|---|---|---|
| CRV | 0.25 | 0.18 |
| ENS | 0.3 | 0.24 |
| LINK | 0.75 | 0.74 |
| MKR | 0.26 | 0.18 |
| UNI | 0.4 | 0.2 |
| ZRX | 0.18 | 0.12 |
As Liquidation Threshold reductions may lead to user accounts being eligible for liquidations upon their approval, we want to clarify the full implications to the community at each step. Chaos and Gauntlet will publicly communicate the planned amendments and list of affected accounts leading to the on-chain execution.
References
- Implementation: AaveV2Ethereum
- Tests: AaveV2Ethereum
- Discussion
Disclaimer
Gauntlet and Chaos Labs have not been compensated by any third party for publishing this ARFC.
Copyright
Copyright and related rights waived via CC0.
By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos.
03Mismatch analysis
The proposal follows the standard Aave governance execution pattern: the on-chain calldata consists of a single execute() call to a dedicated payload contract, rather than direct calls to the Aave V2 PoolConfigurator setting each asset's Liquidation Threshold individually. This is expected and typical for Aave proposals — the actual LT changes are implemented inside the payload contract's execute() function, whose source code is linked in the proposal's References section (AaveV2Ethereum_V2DeprecationPlan20240102.sol) rather than being visible in the decoded calldata itself. Because the decoded action is an opaque fallback/execute() call, I cannot directly verify from calldata alone that the six LT values (CRV, ENS, LINK, MKR, UNI, ZRX) match the table in the description. However, this opacity is a structural characteristic of Aave's payload-based governance execution, not evidence of a mismatch — there is nothing in the calldata that contradicts the description, and no unexpected targets, transfers, or extra actions are present. Given the single action targets a payload contract consistent with the linked implementation and no additional or conflicting actions appear, I found no basis to flag a discrepancy. Confidence is marked low specifically because the specific numeric LT changes cannot be independently confirmed from the decoded calldata provided (only the outer execute() call is visible), so a full verification of exact figures was not possible from this data alone.
Generated by Kvorum
04Actions
- Target
- 0xe477…b810
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
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