KVORUM
aaveSource: Aave governor v2 · #296

LUSD collateral activation

executedAug 15, 2023, 07:11 AM UTCby320x329c…3ed4

01Summary

AISummary by Kvorumclaude-haiku-4-5

Activate LUSD as a collateral asset on Aave V3 ETH pool with risk parameters mirroring USDC (77% LTV, 80% liquidation threshold, 4.5% liquidation penalty, 10% protocol fee).

Type
protocol addition

Key changes

  • LUSD added as collateral asset on Aave V3 ETH pool(high)
  • Risk parameters set to: LTV 77%, Liquidation Threshold 80%, Liquidation Penalty 4.5%, Liquidation Protocol Fee 10%(high)

Notable concerns

  • LUSD collateral quality depends on Liquity protocol stability
  • Potential synergy claims with GHO require empirical validation
ContractsAave V3 ETH Pool
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

241 words

Simple Summary

This AIP proposes to activate LUSD as a collateral asset on the Aave V3 ETH pool. The proposed risk parameters for LUSD will mirror those currently in place for USDC on the same pool.

Motivation

LUSD is a decentralized stablecoin minted by users of the Liquity Protocol. It has demonstrated its resilience and maintained a stable peg, even in volatile market conditions. By adding LUSD as a collateral asset on the Aave V3 ETH pool, we can offer our users more options for their DeFi activities. Furthermore, the integration of LUSD could potentially synergize with the GHO, enhancing liquidity and further reinforcing the stability of the peg.

Specification

The proposed risk parameters for LUSD on the Aave V3 ETH pool are as follows:

ParameterValue
Loan-to-Value (LTV)77%
Liquidation Threshold (LT)80%
Liquidation Penalty4.5%
Liquidation Protocol Fee10%

These parameters are identical to those currently in place for USDC on the Aave V3 ETH pool.

References

Disclaimer

This proposal is part of the Skyward program, the ACI has not been compensated by any third-party to present this ARFC. At the time of writing, the author does not hold LQTY tokens but owns some LUSD.

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorum

A calldata-vs-description analysis is not generated yet. Review the decoded actions →

04Actions

1 total
#0fallback()chain 0x1
Target
0x96b3…8b43
Value
0 wei
Function
fallback()
Arguments
{}
Calldata

05Tally

Summed from votes

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VP participating0
Outcome (current)—
Current support—

06Voters

0 total

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07Forum

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