Chaos Labs Risk Parameter Update - CRV Aave V3 Polygon
01Summary
Proposal to reduce CRV risk exposure on Aave V3 Polygon by decreasing Liquidation Threshold from 80 to 75 and Loan-To-Value from 75 to 70, addressing declining market liquidity. Zero accounts currently affected at time of proposal.
- Type
- parameter change
Key changes
- Reduce CRV Liquidation Threshold from 80 to 75 (5% decrease)(high)
- Reduce CRV Loan-To-Value from 75 to 70 (5% decrease)(high)
Notable concerns
- Liquidation Threshold reductions may cause user accounts to become eligible for liquidations upon approval
- Zero accounts currently affected, but reductions follow Risk-Off Framework with slightly more aggressive cuts
Generated by Kvorum
02Description
Simple Summary
A proposal to reduce Liquidation Threshold (LT) and Loan-To-Value (LTV) for CRV on Aave V3 Polygon.
Motivation
As the market liquidity of CRV has seen a substantial decline following the initial Polygon V3 listing, this proposal seeks to address this by decreasing the liquidation threshold (LT) and loan-to-value ratio (LTV). The objective is to mitigate the risk exposure associated with CRV and diminish its borrowing power, thereby aligning it more accurately with the existing market climate.
As Liquidation Threshold reductions may lead to user accounts being eligible for liquidations upon their approval, we want to clarify the full implications to the community at each step. We suggest reaching the desired settings with a series of incremental decreases to minimize this impact. This proposal recommends a slightly more aggressive reduction than the one discussed in the Risk-Off Framework previously approved by the community, reducing the LT by 5%.
Chaos Labs will publicly communicate the planned amendments and list of affected accounts leading to the on-chain execution.
In the graph below, we share data to quantify and visualize the effect of the recommended reductions on protocol users. At the time of writing this post, zero (0) accounts will be affected by the proposed decrease.
Specification
| Asset | Parameter | Current Value | Recommendation |
|---|---|---|---|
| CRV | LT | 80 | 75 |
| CRV | LTV | 75 | 70 |
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal description specifies concrete parameter changes (CRV LT 80%→75%, LTV 75%→70%) on Aave V3 Polygon. The decoded calldata shows a single generic 'execute(address)' call targeting what appears to be a governance execution/bridge contract, passing the address of a separate payload contract. This is the standard pattern used by Aave governance proposals, where the actual parameter-setting logic (e.g., calls to a PoolConfigurator to set LT/LTV) resides inside the referenced payload contract rather than being directly visible in the top-level calldata. Because the payload contract's internal logic is not decoded or provided, I cannot directly verify that the embedded calls set CRV's LT to 75% and LTV to 70% as described. However, this opaque-execute-payload pattern is routine and expected for Aave V3 cross-chain governance actions, and there is nothing in the visible calldata that contradicts or extends beyond the description (e.g., no unrelated transfers, no additional targets, no suspicious value transfers). Given the lack of visibility into the payload's internal calls, confidence in a full match is low, but there is no evidence of any discrepancy, extra action, or misleading phrasing based on what is decodable. Therefore, I mark this as consistent with low confidence, reflecting that the surface-level calldata does not contradict the description, while acknowledging the specific numeric parameters could not be independently verified from the provided decoded actions alone.
Generated by Kvorum
04Actions
- Target
- 0x158a…d45b
- Value
- 0 wei
- Function
- execute(address)
- Arguments
{ "0": "0x134C50556dE1A83Dd947c9460a58d8d60a289CEa" }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 070x0703…961b | For | 109.3K | 31.63% | — | 3y ago |
| 620x62a4…816a | For | 83.2K | 24.08% | — | 3y ago |
| 130x13bd…8548 | For | 82.2K | 23.78% | — | 3y ago |
| E40xe459…e666 | For | 51.9K | 15.02% | — | 3y ago |
| EA0xea17…6676 | For | 15.3K | 4.42% | — | 3y ago |
| 180x1855…98ba | For | 3K | 0.87% | — | 3y ago |
| A00xa06c…61f7 | For | 604.6 | 0.17% | — | 3y ago |
| 340x34ff…ad71 | For | 60 | 0.02% | — | 3y ago |
| B90xb933…8dd1 | For | 4.2 | 0.00% | — | 3y ago |
| A40xa42b…8240 | For | 2.1 | 0.00% | — | 3y ago |
| 640x64c4…9c5d | For | 0.7 | 0.00% | — | 3y ago |
| 780x7851…11e7 | Against | 0.7 | 0.00% | — | 3y ago |
| 6B0x6b05…ace8 | For | 0.1 | 0.00% | — | 3y ago |
| 420x4218…2814 | For | 0 | 0.00% | — | 3y ago |
| 6A0x6a61…c3b0 | For | 0 | 0.00% | — | 3y ago |
| 120x121d…876e | For | 0 | 0.00% | — | 3y ago |
| 730x73c0…36b4 | For | 0 | 0.00% | — | 3y ago |
07Forum
No forum thread is confidently linked to this proposal.
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