Gauntlet Recommendation for CRV LTV -> 0 on Aave v2 Ethereum
01Summary
Gauntlet proposes setting CRV (Curve DAO Token) Loan-to-Value (LTV) to 0 on Aave v2 Ethereum to prevent additional borrowing against CRV collateral, citing concerns about a specific account borrowing $54m USDT against $158m CRV and recent CRV liquidity decreases.
- Type
- parameter change
Key changes
- Set CRV LTV to 0 on Aave v2 Ethereum via configureReserveAsCollateral method on LendingPoolConfigurator contract(high)
- Liquidation threshold remains at 5500 basis points (55%)(medium)
- Liquidation bonus remains at 10800 basis points (8%)(medium)
Notable concerns
- Specific account (0x7a16ff8270133f063aab6c9977183d9e72835428) holds $158m in CRV collateral backing $54m in USDT borrowing and may be impacted by this change
- Recent decrease in CRV liquidity identified as risk factor
- Setting LTV to 0 prevents new borrowing against CRV but existing positions remain subject to liquidation risk
Generated by Kvorum
02Description
Summary
Gauntlet recommends setting CRV LTV -> 0 on Aave v2 Ethereum.
Motivation
Gauntlet has been looking into the risk profile of 0x7a16ff8270133f063aab6c9977183d9e72835428. This account borrows roughly $54m of USDT against $158m of CRV, as of 2023/08/01. We recommend setting CRV LTV to 0 to help impede additional borrowing against existing CRV collateral due to the recent decrease in CRV liquidity.
Specification
Set CRV LTV -> 0 on Aave v2 Ethereum.
Implementation
The proposal modifies the LTV on CRV using the configureReserveAsCollateral method on the LendingPoolConfigurator contract for Aave v2 Ethereum.
Disclaimer
Gauntlet has not received any compensation from any third-party in exchange for recommending any of the actions contained in this proposal.
Copyright
Copyright and related rights waived via CC0.
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03Mismatch analysis
The description states the proposal sets CRV's LTV to 0 on Aave v2 Ethereum using configureReserveAsCollateral on the LendingPoolConfigurator contract. The single decoded action matches exactly: it targets the known Aave v2 LendingPoolConfigurator address, calls configureReserveAsCollateral with the CRV token address, and sets the LTV parameter to 0. The function signature requires liquidationThreshold and liquidationBonus parameters as well (5500 and 10800), but since configureReserveAsCollateral always requires all three parameters together, and there is no indication these values represent a change (they are standard risk parameters likely being preserved rather than altered), this is treated as a routine mechanical requirement of the call rather than an undisclosed action. No value, target, or directional mismatches were found between the prose and the calldata.
Generated by Kvorum
04Actions
- Target
- 0x311b…5756
- Value
- 0 wei
- Function
- configureReserveAsCollateral(address,uint256,uint256,uint256)
- Arguments
{ "0": "0xD533a949740bb3306d119CC777fa900bA034cd52", "1": "0", "2": "5500", "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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