Deprecation of Low Demand Volatile Assets on Aave V3 Instances
01Summary
This proposal sets the Loan-to-Value (LTV) ratio to 0% for 9 low-demand volatile assets across multiple Aave V3 instances (Ethereum Core, ZkSync, BNB, and Metis). Affected assets include UNI, CRV, BAL, ENS, LDO, 1INCH, ZK, Cake, and METIS. This is the second part of a deprecation initiative proposed by Chaos Labs.
- Type
- parameter change
Key changes
- ZkSync ZK LTV reduced from 40% to 0%(medium)
- Ethereum Core UNI LTV reduced from 65% to 0%(high)
- Ethereum Core CRV LTV reduced from 35% to 0%(medium)
- Ethereum Core BAL LTV reduced from 57% to 0%(high)
- Ethereum Core ENS LTV reduced from 39% to 0%(medium)
- Ethereum Core LDO LTV reduced from 40% to 0%(medium)
- BNB Cake LTV reduced from 55% to 0%(high)
- Ethereum Core 1INCH LTV reduced from 57% to 0%(high)
Notable concerns
- Users with collateral in these assets will no longer be able to use them as collateral for borrowing
- This is part of a multi-part deprecation initiative for low-demand volatile assets
Generated by Kvorum
02Description
Simple Summary
This AIP is the second part of the deprecation of low demand asset proposed by Chaos Labs. It sets the LTV of some of them to 0%.
Motivation
A full run down of the motivation is available on the governance forum.
Specification
| Instance | Asset | Current LTV | Recommended LTV |
|---|---|---|---|
| ZkSync | ZK | 40% | 0 |
| Ethereum Core | UNI | 65% | 0 |
| Ethereum Core | CRV | 35% | 0 |
| Ethereum Core | BAL | 57% | 0 |
| Ethereum Core | ENS | 39% | 0 |
| Ethereum Core | LDO | 40% | 0 |
| BNB | Cake | 55% | 0 |
| Ethereum Core | 1INCH | 57% | 0 |
| Metis | METIS | 30% | 0 |
References
- Implementation: AaveV3Ethereum, AaveV3Metis, AaveV3BNB, AaveV3ZkSync
- Tests: AaveV3Ethereum, AaveV3Metis, AaveV3BNB, AaveV3ZkSync Snapshot: Direct-to-AIP
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The decoded calldata contains only a single generic execute() call to a payload contract address, with no decoded internal parameters. This is the standard pattern for Aave cross-chain governance proposals: the actual per-asset, per-market LTV changes (ZK, UNI, CRV, BAL, ENS, LDO, Cake, 1INCH, METIS) are implemented inside the referenced Solidity payload contracts (AaveV3Ethereum, AaveV3Metis, AaveV3BNB, AaveV3ZkSync), which are linked in the References section but not represented in the decoded on-chain action data provided here. Because the calldata trace does not expose the specific setLtv calls or their parameters, I cannot directly verify each claimed LTV change (e.g., confirm ENS or Cake LTV set exactly to 0) against the calldata - the single execute() action is opaque. This is a routine/expected structure for this type of proposal (single execute() to a dedicated payload contract), not evidence of tampering or mismatch. Given the lack of granular decoded data, I mark confidence as low and do not flag any discrepancy, since there is no visible contradiction between the description and the available calldata - only an inability to fully verify the specifics from what was decoded. Delegates relying on this analysis should independently check the linked implementation contract source for the exact setLtv values if they want full assurance beyond what the decoded calldata shows.
Generated by Kvorum
04Actions
- Target
- 0x56c4…d2eb
- 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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