Aave V3 Interest Rate Curve Changes

Summary

A proposal to make parameter changes on Aave V3 markets.

For full details, refer to the forum post.

Abstract

Given the significant shifts in crypto markets, Gauntlet’s platform has evaluated all assets on Aave V3 and has identified opportunities to adjust parameters for certain assets for the benefit of the protocol.

Motivation

Among other factors, there are two primary reasons to adjust an interest rate curve:

1. mitigate the risk of 100% utilization in a pool
2. build reserves via protocol revenue to cover insolvencies or other expenses in the future

Specification

BGD Labs, in collaboration with Gauntlet, prepared the proposal payload. We appreciate BGD's support throughout this proposal process.

Should this AIP pass, we will implement the Avalanche market changes from a separate payload because AIPs currently do not support Avalanche changes.

Copyright

Copyright and related rights waived via CC0.

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