KVORUM
aaveSource: Aave governor v2 · #39

Risk Parameter Updates for Aave V2 assets

executedOct 8, 2021, 12:20 AM UTCby680x683a…6c02

01Summary

AISummary by Kvorumclaude-haiku-4-5

Batch update of risk parameters across nine Aave V2 assets (WETH, CRV, ENJ, MANA, UNI, YFI, ZRX, XSUSHI, USDC) adjusting Loan-to-Value, Liquidation Threshold, and Liquidation Bonus ratios to align with community-selected Moderate risk level and respond to recent volatility changes.

Type
parameter change

Key changes

  • WETH LTV increased from 80% to 82.5%(medium)
  • CRV LTV decreased from 40% to 35%(medium)
  • ENJ LTV increased from 50% to 55% and Liquidation Threshold increased from 60% to 65%(medium)
  • MANA LTV increased from 60% to 65% and Liquidation Threshold increased from 65% to 70%(medium)
  • UNI LTV decreased from 60% to 50%(high)
  • YFI LTV increased from 45% to 50%, Liquidation Threshold increased from 60% to 65%, and Liquidation Bonus decreased from 10% to 8%(high)
  • ZRX LTV increased from 60% to 65%(medium)
  • XSUSHI LTV decreased from 35% to 30%(medium)

Notable concerns

  • CRV experienced highest volatility increase (0.449) among tracked assets from 09-14 to 09-28, yet LTV was only slightly decreased; UNI LTV was decreased despite positive collateral usage change; some assets with high volatility increases (SUSHI at 0.329) received LTV decreases despite increased collateral usage
Contracts0x311bb771e4f8952e6da169b425e7e92d6ac45756
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

487 words

Simple Summary

A proposal to adjust thirteen (13) total risk parameters across nine (9) Aave V2 assets including LTV, Liquidation Threshold, and Liquidation Bonus.

Abstract

This proposal is a batch update of three risk parameters based on previously selected community risk level preferences. First, a continuation of the two previous liquidation bonus updates, AIP-34: Liquidation Bonus Updates and AIP-38: Liquidation Bonus Updates for Eleven Aave V2 Assets. Second, updated LTV and Liquidation Threshold parameters to realign with the Moderate risk level chosen by the community.

Motivation

This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets. While increased volatility affected most assets in the ecosystem, some tail assets experienced even higher volatility and larger collateral usage (supply that is significantly borrowed against). In addition, increased liquidity and decreased trading slippage for certain assets allow for lower liquidation bonuses.

Specification

ParameterCurrent ValueRecommended Value
WETH Loan To Value80%82.5%
CRV Loan To Value40%35%
ENJ Loan To Value50%55%
ENJ Liquidation Threshold60%65%
MANA Loan To Value60%65%
MANA Liquidation Threshold65%70%
UNI Loan To Value60%50%
YFI Loan To Value45%50%
YFI Liquidation Threshold60%65%
YFI Liquidation Bonus10%8%
ZRX Loan To Value60%65%
XSUSHI Loan To Value35%30%
USDC Liquidation Bonus5%4%

See below volatility and collateral usage changes from 9/14 to 9/28 that were important drivers for the updated parameter recommendations.

Symbol09-28 Volatility09-14 VolatilityVolatility ChangeCollateral Usage Change USD
WETH1.0120949010.9791917250.032903176-86338828
ZRX1.4747250521.3555409680.119184084-328484
UNI1.5921165991.3244865070.2676300924821417
ENJ1.6601705071.706717325-0.046546818-2369990
YFI1.2489346651.1221332610.126801404-1931790
CRV2.0508758451.6013316640.449544181-2047792
MANA1.5142358631.5109121290.003323734-1420138
SUSHI1.8295577121.4997540670.3298036454744051

Risk Dashboard

The community should use Gauntlet's Risk Dashboard to better understand the updated parameter suggestions and general market risk in Aave V2.

Implementation

The proposal sets the LTV, liquidation bonuses, and liquidation threshold ratios by calling configureReserveAsCollateral on the LendingPoolConfigurator contract at 0x311Bb771e4F8952E6Da169b425E7e92d6Ac45756, using the address and parameters specific to each token.

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorumclaude-sonnet-5
Consistent

I matched each of the 9 configureReserveAsCollateral calls to the token addresses referenced in the table (CRV, ENJ, MANA, XSUSHI, UNI, USDC, WETH, YFI, ZRX) using known mainnet token addresses. For every asset, the LTV, Liquidation Threshold, and Liquidation Bonus values in the calldata (converted from basis points, e.g. 8250 = 82.5%, 10400 = 104% i.e. a 4% bonus) exactly match the 'Recommended Value' column in the proposal's Specification table for every parameter the description claims to change. Parameters not mentioned as changing (e.g. CRV's LT/LB, WETH's LT/LB) are passed through unchanged in the calldata, which is expected since configureReserveAsCollateral requires all three parameters be resubmitted together — this is not a discrepancy. The total count of 9 assets and 13 parameter changes stated in the Simple Summary also reconciles exactly with the 9 decoded actions and the 13 distinct parameter changes enumerated in the table. No value mismatches, target mismatches, omissions, or misleading phrasing were found. Confidence is high because the description provides a precise numeric table that can be directly checked against the decoded basis-point arguments.'

Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
Review the decoded actions ↗

04Actions

9 total
#0configureReserveAsCollateral(address,uint256,uint256,uint256)chain 0x1
Target
0x311b…5756
Value
0 wei
Function
configureReserveAsCollateral(address,uint256,uint256,uint256)
Arguments
{
  "0": "0xD533a949740bb3306d119CC777fa900bA034cd52",
  "1": "3500",
  "2": "5500",
  "3": "11000"
}
Calldata
#1configureReserveAsCollateral(address,uint256,uint256,uint256)chain 0x1
Target
0x311b…5756
Value
0 wei
Function
configureReserveAsCollateral(address,uint256,uint256,uint256)
Arguments
{
  "0": "0xF629cBd94d3791C9250152BD8dfBDF380E2a3B9c",
  "1": "5500",
  "2": "6500",
  "3": "11000"
}
Calldata
#2configureReserveAsCollateral(address,uint256,uint256,uint256)chain 0x1
Target
0x311b…5756
Value
0 wei
Function
configureReserveAsCollateral(address,uint256,uint256,uint256)
Arguments
{
  "0": "0x0F5D2fB29fb7d3CFeE444a200298f468908cC942",
  "1": "6500",
  "2": "7000",
  "3": "10750"
}
Calldata
#3configureReserveAsCollateral(address,uint256,uint256,uint256)chain 0x1
Target
0x311b…5756
Value
0 wei
Function
configureReserveAsCollateral(address,uint256,uint256,uint256)
Arguments
{
  "0": "0x8798249c2E607446EfB7Ad49eC89dD1865Ff4272",
  "1": "3000",
  "2": "6000",
  "3": "11000"
}
Calldata
#4configureReserveAsCollateral(address,uint256,uint256,uint256)chain 0x1
Target
0x311b…5756
Value
0 wei
Function
configureReserveAsCollateral(address,uint256,uint256,uint256)
Arguments
{
  "0": "0x1f9840a85d5aF5bf1D1762F925BDADdC4201F984",
  "1": "5000",
  "2": "7000",
  "3": "11000"
}
Calldata
#5configureReserveAsCollateral(address,uint256,uint256,uint256)chain 0x1
Target
0x311b…5756
Value
0 wei
Function
configureReserveAsCollateral(address,uint256,uint256,uint256)
Arguments
{
  "0": "0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48",
  "1": "8250",
  "2": "8500",
  "3": "10400"
}
Calldata
#6configureReserveAsCollateral(address,uint256,uint256,uint256)chain 0x1
Target
0x311b…5756
Value
0 wei
Function
configureReserveAsCollateral(address,uint256,uint256,uint256)
Arguments
{
  "0": "0xC02aaA39b223FE8D0A0e5C4F27eAD9083C756Cc2",
  "1": "8250",
  "2": "8500",
  "3": "10500"
}
Calldata
#7configureReserveAsCollateral(address,uint256,uint256,uint256)chain 0x1
Target
0x311b…5756
Value
0 wei
Function
configureReserveAsCollateral(address,uint256,uint256,uint256)
Arguments
{
  "0": "0x0bc529c00C6401aEF6D220BE8C6Ea1667F6Ad93e",
  "1": "5000",
  "2": "6500",
  "3": "10800"
}
Calldata
#8configureReserveAsCollateral(address,uint256,uint256,uint256)chain 0x1
Target
0x311b…5756
Value
0 wei
Function
configureReserveAsCollateral(address,uint256,uint256,uint256)
Arguments
{
  "0": "0xE41d2489571d322189246DaFA5ebDe1F4699F498",
  "1": "6500",
  "2": "7000",
  "3": "10750"
}
Calldata

05Tally

Summed from votes

Voters0
VP participating0
Outcome (current)—
Current support—

06Voters

0 total
Filter:
VoterChoice% of totalRationale
100x10f8…1f92For125.4K0.00%—5y ago
C10xc17c…64e1For103.3K0.00%—5y ago
5B0x5bc9…d76cFor84.1K0.00%—5y ago
470x47c1…4770For7.6K0.00%—5y ago
800x80dc…c146For3.9K0.00%—5y ago
700x704d…a0dfFor3.5K0.00%—5y ago
680x683a…6c02For3.1K0.00%—5y ago
E80xe831…7697For431.30.00%—5y ago
8D0x8d07…a265For500.00%—5y ago
BC0xbca7…e0d5For20.60.00%—5y ago
A00xa0ef…2d56For80.00%—5y ago
Showing 11

07Forum

No forum thread is confidently linked to this proposal.