KVORUM
aaveSource: Aave governor v2 · #42

Risk Parameter Updates 2021-10-14

executedOct 21, 2021, 09:52 PM UTCby680x683a…6c02

01Summary

AISummary by Kvorumclaude-haiku-4-5

Batch update of nine risk parameters across eight Aave V2 assets (BAT, CRV, ENJ, REN, SUSHI, UNI, WBTC, YFI) including Loan-to-Value, Liquidation Threshold, and Liquidation Bonus adjustments to maintain protocol risk tolerance at the Moderate risk level chosen by the community.

Type
parameter change

Key changes

  • BAT Liquidation Threshold increased from 75% to 80%(medium)
  • CRV Loan-to-Value increased from 35% to 45%(medium)
  • CRV Liquidation Threshold increased from 55% to 60%(medium)
  • ENJ Loan-to-Value increased from 55% to 60%(medium)
  • REN Loan-to-Value increased from 50% to 55%(medium)
  • SUSHI Loan-to-Value increased from 30% to 45%(high)
  • UNI Loan-to-Value increased from 55% to 60%(medium)
  • WBTC Liquidation Bonus decreased from 7.5% to 6.5%(medium)

Notable concerns

  • REN showed the largest weekly volume decline at -49.26%
  • UNI showed significant weekly volume decline at -45.11%
  • ENJ showed substantial weekly volume decline at -27.17%
  • CRV showed substantial weekly volume decline at -20.95%
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

372 words

Simple Summary

A proposal to adjust nine (9) total risk parameters across eight (8) Aave V2 assets including LTV, Liquidation Threshold, and Liquidation Bonus.

Abstract

This proposal is a batch update of three risk parameters to align with the the Moderate risk level chosen by the Aave community. These paramater updates are a continuation of Gauntlet's regular parameter recommendations, the latest being AIP-40: Risk Parameter Updates 2021-10-07.

Motivation

This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets. For more detail on Gauntlet's first two months of recommendations and their impact, please see Gauntlet's most recent Monthly Risk Report.

Specification

ParameterCurrent ValueRecommended Value
BAT Liquidation Threshold75%80%
CRV Loan To Value35%45%
CRV Liquidation Threshold55%60%
ENJ Loan To Value55%60%
REN Loan To Value50%55%
SUSHI Loan To Value30%45%
UNI Loan To Value55%60%
WBTC Liquidation Bonus7.5%6.5%
YFI Liquidation Bonus8%7.5%

See below volatility and exchange volume data from 10/07 to 10/14 that were important drivers for the updated parameter recommendations.

Symbol10-14 Volatility10-07 VolatilityVolatility ChangeWeekly Average Daily Volume Change (%)
BAT0.9294402621.26231086-0.332870598-5.5534425
CRV1.6809648562.06913145-0.388166594-20.9446652
ENJ1.1658231761.684204979-0.518381803-27.1658359
REN1.8267138742.073377777-0.246663903-49.2642672
SUSHI1.5212035011.831060432-0.309856931-17.0524519
UNI1.3282925781.625790476-0.297497898-45.1124435
WBTC0.6947018530.83363382-0.13893196750.5601238
YFI1.0383569551.240436029-0.20207907481.6590629

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.

The full list of parameter updates can be found in the forum.

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorumclaude-sonnet-5
Consistent

I checked each of the 8 decoded configureReserveAsCollateral calls against the specification table. Each call targets the same LendingPoolConfigurator address named in the Implementation section, and the token order in the calldata (BAT, CRV, ENJ, REN, SUSHI, UNI, WBTC, YFI) matches the table order. For every asset, the parameter the table claims is changing (LTV, LT, or LB) matches the calldata value after converting basis points to percentages (e.g., 8000 bps = 80% LT for BAT, 4500 bps = 45% LTV for CRV, 10650 bps = 6.5% LB for WBTC, etc.). Parameters not mentioned as changing in the table appear unchanged in the calldata call (e.g., BAT's LTV stays 70% and LB stays 7.5%, only LT moves to 80%), which is expected since configureReserveAsCollateral requires passing all three parameters even when only one changes — this is standard implementation detail, not a hidden action. No value mismatches, no extra or missing actions, and no target mismatches were found. The description is a faithful, complete summary of the calldata's effects.'

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

04Actions

8 total
#0configureReserveAsCollateral(address,uint256,uint256,uint256)chain 0x1
Target
0x311b…5756
Value
0 wei
Function
configureReserveAsCollateral(address,uint256,uint256,uint256)
Arguments
{
  "0": "0x0D8775F648430679A709E98d2b0Cb6250d2887EF",
  "1": "7000",
  "2": "8000",
  "3": "10750"
}
Calldata
#1configureReserveAsCollateral(address,uint256,uint256,uint256)chain 0x1
Target
0x311b…5756
Value
0 wei
Function
configureReserveAsCollateral(address,uint256,uint256,uint256)
Arguments
{
  "0": "0xD533a949740bb3306d119CC777fa900bA034cd52",
  "1": "4500",
  "2": "6000",
  "3": "11000"
}
Calldata
#2configureReserveAsCollateral(address,uint256,uint256,uint256)chain 0x1
Target
0x311b…5756
Value
0 wei
Function
configureReserveAsCollateral(address,uint256,uint256,uint256)
Arguments
{
  "0": "0xF629cBd94d3791C9250152BD8dfBDF380E2a3B9c",
  "1": "6000",
  "2": "6500",
  "3": "11000"
}
Calldata
#3configureReserveAsCollateral(address,uint256,uint256,uint256)chain 0x1
Target
0x311b…5756
Value
0 wei
Function
configureReserveAsCollateral(address,uint256,uint256,uint256)
Arguments
{
  "0": "0x408e41876cCCDC0F92210600ef50372656052a38",
  "1": "5500",
  "2": "6000",
  "3": "10750"
}
Calldata
#4configureReserveAsCollateral(address,uint256,uint256,uint256)chain 0x1
Target
0x311b…5756
Value
0 wei
Function
configureReserveAsCollateral(address,uint256,uint256,uint256)
Arguments
{
  "0": "0x8798249c2E607446EfB7Ad49eC89dD1865Ff4272",
  "1": "4500",
  "2": "6000",
  "3": "11000"
}
Calldata
#5configureReserveAsCollateral(address,uint256,uint256,uint256)chain 0x1
Target
0x311b…5756
Value
0 wei
Function
configureReserveAsCollateral(address,uint256,uint256,uint256)
Arguments
{
  "0": "0x1f9840a85d5aF5bf1D1762F925BDADdC4201F984",
  "1": "6000",
  "2": "7000",
  "3": "10800"
}
Calldata
#6configureReserveAsCollateral(address,uint256,uint256,uint256)chain 0x1
Target
0x311b…5756
Value
0 wei
Function
configureReserveAsCollateral(address,uint256,uint256,uint256)
Arguments
{
  "0": "0x2260FAC5E5542a773Aa44fBCfeDf7C193bc2C599",
  "1": "7000",
  "2": "7500",
  "3": "10650"
}
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": "10750"
}
Calldata

05Tally

Summed from votes

Voters13
VP participating655.8K
Outcome (current)For
Current support100%

06Voters

13 total
Filter:
VoterChoice% of totalRationale
DD0xdd70…8202For224.3K34.21%—5y ago
F60xf63e…78c8For125.9K19.19%—5y ago
9B0x9b5e…0499For110.2K16.80%—5y ago
C10xc17c…64e1For103.3K15.76%—5y ago
5B0x5bc9…d76cFor63.9K9.74%—5y ago
070x0703…961bFor10K1.52%—5y ago
450x458c…730eFor10K1.52%—5y ago
800x80dc…c146For3.7K0.57%—5y ago
700x704d…a0dfFor3.5K0.53%—5y ago
3A0x3a25…e9d2For956.70.15%—5y ago
8D0x8d07…a265For500.01%—5y ago
270x2713…d6e5For15.30.00%—5y ago
A00xa0ef…2d56For80.00%—5y ago
Showing 13

07Forum

No forum thread is confidently linked to this proposal.