Risk Parameter Updates for Aave V3 Optimism Market (2022-12-29)

Summary

A proposal to make parameter changes on Aave V3 Optimism.

Abstract

These parameter updates are a continuation of Gauntlet’s regular parameter recommendations.

Motivation

Any market without supply caps could experience an outsized risk by someone opening a large position quickly. Maintaining supply caps that ensure that one user cannot subject the protocol to outsize risk is a key part of risk management for Aave v3 markets.

The supply cap can be revised lower if the community elects a more conservative approach. Regardless, the first step would be implementing an initial supply cap, which this proposal would accomplish.

Specification

Implementation

A full specification of the payload contract and tests enabling this proposal can be found on Github here.

• Link to Payload implementation: AaveV3OptCapsPayload010423.sol
• Link to Payload tests: AaveV3OptCapsPayload010423.t.sol
• Link to deployed Payload: 0x31976dc2ea27e75cc5a3687ed594d17127f9b72e

Copyright

Copyright and related rights waived via CC0.

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