V2 Deprecation Plan, 2023.11.20
01Summary
Proposal to reduce Liquidation Thresholds on 14 frozen assets in Aave V2 Ethereum as part of the v2 deprecation framework. Changes range from 1% to 80% across assets like BAL, CRV, CVX, and others. Expected to affect 33 accounts with approximately $5,460 in cumulative liquidations.
- Type
- parameter change
Key changes
- BAL Liquidation Threshold reduced from 21% to 1%(high)
- CRV Liquidation Threshold reduced from 38% to 30%(medium)
- CVX Liquidation Threshold reduced from 30% to 24%(medium)
- DPI Liquidation Threshold reduced from 14% to 5%(high)
- ENJ Liquidation Threshold reduced from 50% to 44%(medium)
- ENS Liquidation Threshold reduced from 47% to 38%(medium)
- LINK Liquidation Threshold reduced from 81% to 80%(low)
- MANA Liquidation Threshold reduced from 37% to 29%(medium)
Notable concerns
- 33 accounts will become eligible for liquidation upon approval
- Approximately $5,460 in cumulative value will be liquidated across affected accounts
- Parameter reductions set at ~4% margin from closest LT figure to optimize while limiting liquidation scope
Generated by Kvorum
02Description
Simple Summary
A proposal to reduce Liquidation Thresholds (LT) on Aave V2 Ethereum.
Motivation
In accordance with the v2 deprecation framework, Gauntlet and Chaos Labs advise implementing the subsequent parameter changes to the frozen assets on Aave v2 Ethereum.
Specification
The recommendations below suggest an LT configuration that optimizes reductions without significantly increasing the number of accounts eligible for liquidation. The proposed values are set at a margin of at least ~4% from the closest LT figure, which would trigger more substantial liquidations. This will affect 33 accounts, leading to a cumulative of $5,460 in value liquidated.
| Asset | Current LT | New LT |
|---|---|---|
| BAL | 21% | 1% |
| CRV | 38% | 30% |
| CVX | 30% | 24% |
| DPI | 14% | 5% |
| ENJ | 50% | 44% |
| ENS | 47% | 38% |
| LINK | 81% | 80% |
| MANA | 37% | 29% |
| MKR | 30% | 28% |
| REN | 25% | 18% |
| SNX | 41% | 30% |
| UNI | 64% | 55% |
| YFI | 43% | 32% |
| ZRX | 34% | 24% |
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 and Gauntlet will publicly communicate the planned amendments and list of affected accounts leading to the on-chain execution.
References
- Implementation: AaveV2Ethereum
- Tests: AaveV2Ethereum
- Discussion
Disclaimer
Gauntlet and Chaos Labs have not been compensated by any third party for publishing this ARFC.
Copyright
Copyright and related rights waived via CC0.
By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos.
03Mismatch analysis
The proposal description lists specific Liquidation Threshold reductions for 14 frozen Aave V2 Ethereum assets, consistent with Aave's v2 deprecation framework and referencing a specific implementation contract (AaveV2Ethereum_V2DeprecationPlan20231120). The single decoded on-chain action is a generic 'forwardPayloadForExecution' call that hands off execution to a separate payload contract address (0xdAbad81aF85554E9ae636395611C58F7eC1aAEc5). This is the standard governance bridging pattern used by Aave, where the actual parameter-setting logic (the LT changes) resides in the bytecode of the referenced payload contract, not directly in the decoded calldata provided here. Because the decoded action does not expose the underlying LT parameter changes, I cannot directly verify each asset's specific percentage change against the calldata. There is no evidence of any mismatch, target redirection, or extra/missing actions — the single action is fully consistent with an Aave governance proposal that forwards to an off-chain-referenced deprecation payload. However, since the actual numeric parameters are not visible in the decoded data (only the payload address and forwarding metadata), a full line-by-line verification of each LT value is not possible from calldata alone. This limits confidence to 'low' per the guidance to avoid over- or under-flagging when verification isn't feasible, while still assessing the overall proposal as consistent given no contradictory evidence was found and the proposal follows the expected structure for this type of Aave governance action referencing an external implementation contract that matches the description's linked source code repository.
Generated by Kvorum
04Actions
- Target
- 0x9aee…2bc7
- Value
- 0 wei
- Function
- forwardPayloadForExecution((uint256,uint8,address,uint40))
- Arguments
{ "0": [ "1", "1", "0xdAbad81aF85554E9ae636395611C58F7eC1aAEc5", "23" ] }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
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