KVORUM
aaveSource: Aave governor v2 · #204

Update AAVE V3 ETH Risk Parameters

executedApr 21, 2023, 07:28 AM UTCby320x329c…3ed4

01Summary

AISummary by Kvorumclaude-haiku-4-5

Update AAVE risk parameters on Aave V3 Ethereum to match Aave V2 parameters: increase Loan-to-Value from 60% to 66% and Liquidation Threshold from 70% to 73%, while maintaining the 7.5% Liquidation Penalty. This aims to make V3 more attractive for user migration from V2.

Type
parameter change

Key changes

  • Increase Loan-to-Value (LTV) from 60% to 66% for AAVE collateral on Aave V3 Ethereum(high)
  • Increase Liquidation Threshold (LT) from 70% to 73% for AAVE collateral on Aave V3 Ethereum(high)
  • Maintain Liquidation Penalty (LP) at 7.5%, already aligned with Aave V2(medium)
Contracts0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
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02Description

288 words

Simple Summary

This AIP proposal presents Aave with the opportunity to update AAVE risk parameters on the Aave V3 Ethereum Pool

Motivation

This AIP proposes the alignment of the AAVE risk parameters on the Aave V3 Ethereum market with those on Aave V2, as the current parameters on Aave V3 are less attractive for users considering migration.

By matching the Aave V2 parameters, we aim to encourage migration and ensure a smoother transition for users. This proposal does not suggest any changes to Aave V3 caps or interest rate strategies.

To make Aave V3 more attractive for migration and to match Aave V2 parameters, we propose the following changes:

  • Loan-to-Value (LTV): Increase the LTV from 60% to 66%.
  • Liquidation Threshold (LT): Increase the LT from 70% to 73%.
  • Liquidation Penalty (LP): Maintain the current LP of 7.5%, as it is already in alignment with Aave V2.

Specification

Ticker: AAVE

Contract address: 0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9

ParameterCurrent Aave V3Current Aave V2Proposed Aave V3
Loan-to-Value (LTV)60%66%66%
Liquidation Threshold (LT)70%73%73%
Liquidation Penalty (LP)7.5%7.5%7.5%
contract AaveV3RiskParams_20230516 is AaveV3PayloadEthereum {
  function collateralsUpdates() public pure override returns (IEngine.CollateralUpdate[] memory) {
    IEngine.CollateralUpdate[] memory collateralUpdate = new IEngine.CollateralUpdate[](1);

    collateralUpdate[0] = IEngine.CollateralUpdate({
      asset: AaveV3EthereumAssets.AAVE_UNDERLYING,
      ltv: 66_00,
      liqThreshold: 73_00,
      liqBonus: EngineFlags.KEEP_CURRENT,
      debtCeiling: EngineFlags.KEEP_CURRENT,
      liqProtocolFee: EngineFlags.KEEP_CURRENT,
      eModeCategory: EngineFlags.KEEP_CURRENT
    });
    return collateralUpdate;
  }
}

References

A list of relevant links like for this proposal:

Security Considerations

The proposal Payload was reviewed by Bored Ghost Developing.

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorummedium confidenceclaude-sonnet-5
Consistent

The decoded on-chain action is a single call to execute() on a payload contract address, which is the standard Aave Governance V2/V3 execution pattern: the DAO calls execute() on a pre-deployed, audited payload contract, and the actual risk-parameter logic lives in that contract's bytecode rather than being passed as calldata arguments. The proposal description includes the full Solidity source of the payload contract (AaveV3RiskParams_20230516), which sets ltv to 66_00 (66%) and liqThreshold to 73_00 (73%) for the AAVE asset while keeping liqBonus (liquidation penalty), debt ceiling, and eMode category unchanged (KEEP_CURRENT). This matches the prose exactly: LTV 60%→66%, LT 70%→73%, LP unchanged at 7.5%, and no changes to caps or interest rate strategies. Because the decoded calldata itself carries no parameters (it's a bare execute() call), I cannot cryptographically verify the internal parameter values from the calldata alone — I am relying on the payload address and the description's embedded source code, which is standard practice for these proposals reviewed by BGD Labs. This limits confidence to medium rather than high, but there is no indication of any mismatch, hidden action, or additional side effect in what is decodable. No numeric, target, or scope discrepancies were found between the description and the available decoded action.

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
0x8afb…d901
Value
0 wei
Function
fallback()
Arguments
{}
Calldata

05Tally

Summed from votes

Voters0
VP participating0
Outcome (current)—
Current support—

06Voters

0 total
Filter:
VoterChoice% of totalRationale
320x329c…3ed4For227.4K0.00%—4y ago
070x0703…961bFor108.1K0.00%—4y ago
620x62a4…816aFor82K0.00%—4y ago
130x13bd…8548For81K0.00%—4y ago
B80xb83b…cf5cFor80.6K0.00%—4y ago
B90xb933…8dd1For42K0.00%—4y ago
EA0xea17…6676For10.7K0.00%—4y ago
180x1855…98baFor3K0.00%—4y ago
A00xa06c…61f7For471.90.00%—4y ago
000x0040…9c09For10.00%—4y ago
E40xe459…e666For0.50.00%—4y ago
Showing 11

07Forum

AIForum synthesis by Kvorumclaude-sonnet-5
sentiment · favorablethread · constructive

Arguments for

  • Aligning V3 AAVE risk parameters with V2 will make V3 more attractive and accelerate user migration from V2 to V3.— MarcZeller, 0xkeyrock.eth, ChaosLabs
  • The change fits within the broader V2-to-V3 migration strategy already endorsed by risk providers.— ChaosLabs
  • Risk modeling shows the proposed LTV/LT increases do not introduce outsized market risk.— GarrettPetersen

Arguments against

None surfaced.

Unresolved concerns

  • Confusion over which asset's LTV and LT parameters are being changed, since different assets have different values.— mintalex

Notable participants

  • MarcZellerProposer of the ARFC via the Aave-Chan Initiative and escalated it to Snapshot stage.
  • ChaosLabsRisk service provider who endorsed the proposal as consistent with the V2-to-V3 migration strategy.
  • GarrettPetersenRepresented Gauntlet, providing risk modeling support for the parameter changes.
  • 0xkeyrock.ethCommunity supporter of the proposal citing V3 adoption benefits.
  • mintalexRaised a clarifying question about which asset's parameters were affected.
  • MathisGDClarified for mintalex that the discussion concerns the AAVE token's parameters.
Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
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