Risk Parameter Updates for AAVE V2 Ethereum
01Summary
Gauntlet proposes to freeze CRV collateral and set its LTV to 0 on Aave v2 Ethereum to mitigate concentration risk from a large account borrowing $63m USDST against $190m CRV collateral, addressing decreased CRV liquidity concerns.
- Type
- parameter change
Key changes
- Freeze CRV reserve on Aave v2 Ethereum(high)
- Set CRV Loan-to-Value (LTV) to 0(high)
- Prevent further CRV collateral deposits and reduce concentration risk for account 0x7a16ff8270133f063aab6c9977183d9e72835428(high)
Notable concerns
- Large account concentration risk with $63m borrowed against $190m CRV
- Decreased CRV liquidity over recent months
- Potential impact on existing CRV holders who may not be able to use it as collateral
Generated by Kvorum
02Description
Summary
Gauntlet recommends to freeze CRV and set CRV LTV -> 0 on Aave v2 Ethereum.
Motivation
Gauntlet has been looking into the risk profile of 0x7a16ff8270133f063aab6c9977183d9e72835428. This account borrows roughly $63m of USDST against $190m of CRV, as of 2023/06/13. We recommend to 1. freeze CRV collateral and 2. set Curve LTV to 0, to prevent the account from continuing to add CRV and increasing concentration risk, due to the decrease in CRV liquidity over the past few months.
Specification
Freeze CRV, set CRV LTV -> 0 on Aave v2 Ethereum.
Implementation
The proposal implements changes on Aave v2 Ethereum using the freezeReserve and configureReserveAsCollateral methods of the LendingPoolConfigurator.
Copyright
Copyright and related rights waived via CC0.
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03Mismatch analysis
The proposal describes two actions: (1) freeze the CRV reserve and (2) set CRV's LTV to 0 on Aave v2 Ethereum, implemented via freezeReserve and configureReserveAsCollateral on the LendingPoolConfigurator. The decoded calldata matches exactly: action 0 calls freezeReserve on the CRV token address (0xD533a949740bb3306d119CC777fa900bA034cd52), and action 1 calls configureReserveAsCollateral on the same CRV address with ltv=0, consistent with the stated goal. The liquidation threshold (58%) and liquidation bonus (8%) parameters passed in action 1 are not explicitly mentioned in the description, but these are standard required arguments for the configureReserveAsCollateral function signature and are not being changed in a way that contradicts the stated intent (only LTV is being zeroed) — this is a reasonable summarization, not a material omission. Both the target contract (LendingPoolConfigurator) and asset (CRV) align with the description's stated scope of 'Aave v2 Ethereum' and 'CRV'. No value, target, or scope mismatches were found.
Generated by Kvorum
04Actions
- Target
- 0x311b…5756
- Value
- 0 wei
- Function
- freezeReserve(address)
- Arguments
{ "0": "0xD533a949740bb3306d119CC777fa900bA034cd52" }- Calldata
- Target
- 0x311b…5756
- Value
- 0 wei
- Function
- configureReserveAsCollateral(address,uint256,uint256,uint256)
- Arguments
{ "0": "0xD533a949740bb3306d119CC777fa900bA034cd52", "1": "0", "2": "5800", "3": "10800" }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
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