Reduce CRV LT by 6%
01Summary
Reduce the Liquidation Threshold for CRV on Aave V2 Ethereum from 55% to 49% (a 6% reduction) to decrease Aave's exposure to CRV. This follows previous community-accepted recommendations and was previously cancelled due to market instability from the Vyper exploit. The reduction may cause some user accounts to become eligible for liquidation.
- Type
- parameter change
Key changes
- Reduce CRV Liquidation Threshold from 55% to 49% on Aave V2 Ethereum(high)
Notable concerns
- User accounts may become eligible for liquidations upon approval of this parameter change
- This proposal was previously accepted but cancelled due to market instability following the Vyper exploit
- Chaos Labs will publicly communicate affected accounts before on-chain execution
Generated by Kvorum
02Description
Simple Summary
A proposal to reduce Liquidation Threshold (LT) by 6%, for CRV on Aave V2 Ethereum.
Motivation
Following our recommendations to decrease Aave’s exposure to CRV on V2 Ethereum here, we propose a series of LT reductions. The first reduction in this cycle of LT updates was executed on July 3rd, 2023.
This proposal was previously accepted by the community. However, after passing AIP, the change was cancelled, as market environments were extremely unstable following the Vyper exploit.
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. Chaos Labs will publicly communicate the planned amendments and list of affected accounts leading to the on-chain execution.
Specification
| Asset | Parameter | Current Value | Recommendation | Change |
|---|---|---|---|---|
| CRV | LT | 55 | 49 | -6% |
References
- Implementation: Ethereum
- Tests: Ethereum
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal follows the standard Aave governance execution pattern: a single on-chain action that calls execute() on an executor/payload contract, which internally performs the parameter changes (in this case, reducing CRV's Liquidation Threshold from 55% to 49% on Aave V2 Ethereum). The decoded calldata only shows the generic execute() fallback call with no granular arguments, since the actual LT update logic lives inside the linked implementation contract (AaveV2_Eth_CRVLTUpdate_20230806.sol) referenced in the description's 'Implementation' link. This is consistent with how Aave AIPs are typically structured and decoded — the description's narrative (motivation, prior cancellation, specification table) aligns with a single-action LT reduction proposal, and there is no evidence in the decoded action of any extra transfers, role grants, or target mismatches. Because the calldata does not expose the specific numeric parameters (55 -> 49) for direct verification, I cannot confirm the exact percentage change on-chain, which limits confidence to medium rather than high. However, nothing in the decoded action contradicts or exceeds what the description claims, and no additional undisclosed actions are present. Given the single action, generic execute() pattern typical for Aave governance, and no visible contradiction, I assess this proposal as consistent with medium confidence rather than flagging a discrepancy that cannot be substantiated from the visible calldata.
Generated by Kvorum
04Actions
- Target
- 0xaf07…147c
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
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