KVORUM
aaveSource: Aave governor v2 · #43

Risk Parameter Updates 2021-10-21

executedOct 28, 2021, 11:28 PM UTCby680x683a…6c02

01Summary

AISummary by Kvorumclaude-haiku-4-5

Batch update of risk parameters for three Aave V2 assets (ENJ, DPI, ZRX) adjusting LTV, Liquidation Threshold, and Liquidation Bonus to align with the community-chosen Moderate risk level. Changes include increasing ENJ Liquidation Threshold from 65% to 70%, increasing DPI LTV from 55% to 65% while decreasing DPI Liquidation Bonus from 10.0% to 8.5%, and decreasing ZRX LTV from 65% to 60%.

Type
parameter change

Key changes

  • ENJ Liquidation Threshold increased from 65% to 70%(medium)
  • DPI Loan to Value increased from 55% to 65%(medium)
  • DPI Liquidation Bonus decreased from 10.0% to 8.5%(medium)
  • ZRX Loan to Value decreased from 65% to 60%(medium)

Notable concerns

  • ZRX collateral usage on Aave almost doubled, identified as an asset being monitored
  • ZRX weekly average daily volume decreased 34.04% during the measurement period
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

333 words

Simple Summary

A proposal to adjust four (4) total risk parameters across three (3) 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-42: Risk Parameter Updates 2021-10-14.

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 our Monthly Risk Report.

Specification

No significant changes in volatility or liquidity were observed in most assets. However, we would note that the collateral usage of ZRX on Aave almost doubled, so that is an asset that we are monitoring during the upcoming period.

ParameterCurrent ValueRecommended Value
ENJ Liquidation Threshold65%70%
DPI Loan To Value55%65%
DPI Liquidation Bonus10.0%8.5%
ZRX Loan To Value65%60%

See below volatility and exchange volume data from 10/14 to 10/21 that were important drivers for the updated parameter recommendations.

Symbol10-21 Volatility10-14 VolatilityVolatility ChangeWeekly Average Daily Volume Change (%)
DPI0.9246618021.07082198-0.14616017896.2012726
ENJ1.0991623751.165823176-0.51838180340.9981913
ZRX1.0675260261.230865683-0.163339657-34.0377076

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 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 mapped each decoded action to its underlying asset using the well-known Aave V2 reserve token addresses: 0x1494CA1F...=DPI, 0xF629cBd9...=ENJ, 0xE41d2489...=ZRX. Comparing the on-chain values (converted from basis points, and liquidation bonus expressed as 100%+bonus) against the description's table: DPI's new LTV (65%) and new Liquidation Bonus (8.5%, i.e. 10850=108.5%) both match the calldata exactly, with its unchanged Liquidation Threshold (70%) correctly omitted from the description as it wasn't a changed parameter. ENJ's new Liquidation Threshold (70%, i.e. 7000) matches the calldata, with its unchanged LTV (60%) and Bonus (10%) reasonably omitted. ZRX's new LTV (60%, i.e. 6000) matches the calldata, with its unchanged Liquidation Threshold (75%) and Bonus (7.5%) reasonably omitted since the description only claims one parameter change per asset (as stated: 4 total risk parameters across 3 assets). All four claimed parameter changes are verified in the calldata with correct values and correct target contract (LendingPoolConfigurator at the address given). No value mismatches, target mismatches, omissions of significant actions, or misleading phrasing were found. The proposal description is a faithful and complete summary of the batch parameter update.}</br>

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

04Actions

3 total
#0configureReserveAsCollateral(address,uint256,uint256,uint256)chain 0x1
Target
0x311b…5756
Value
0 wei
Function
configureReserveAsCollateral(address,uint256,uint256,uint256)
Arguments
{
  "0": "0x1494CA1F11D487c2bBe4543E90080AeBa4BA3C2b",
  "1": "6500",
  "2": "7000",
  "3": "10850"
}
Calldata
#1configureReserveAsCollateral(address,uint256,uint256,uint256)chain 0x1
Target
0x311b…5756
Value
0 wei
Function
configureReserveAsCollateral(address,uint256,uint256,uint256)
Arguments
{
  "0": "0xF629cBd94d3791C9250152BD8dfBDF380E2a3B9c",
  "1": "6000",
  "2": "7000",
  "3": "11000"
}
Calldata
#2configureReserveAsCollateral(address,uint256,uint256,uint256)chain 0x1
Target
0x311b…5756
Value
0 wei
Function
configureReserveAsCollateral(address,uint256,uint256,uint256)
Arguments
{
  "0": "0xE41d2489571d322189246DaFA5ebDe1F4699F498",
  "1": "6000",
  "2": "7500",
  "3": "10750"
}
Calldata

05Tally

Summed from votes

Voters11
VP participating386.5K
Outcome (current)For
Current support100%

06Voters

11 total
Filter:
VoterChoice% of totalRationale
F60xf63e…78c8For123.7K32.01%—5y ago
C10xc17c…64e1For103.3K26.74%—5y ago
FC0xfc56…5e0cFor65.2K16.88%—5y ago
5B0x5bc9…d76cFor63.9K16.53%—5y ago
450x458c…730eFor10K2.59%—5y ago
070x0703…961bFor10K2.59%—5y ago
800x80dc…c146For3.7K0.96%—5y ago
700x704d…a0dfFor3.4K0.87%—5y ago
680x683a…6c02For3.1K0.80%—5y ago
880x883a…1f34For119.80.03%—5y ago
100x10d6…7178For16.40.00%—5y ago
Showing 11

07Forum

No forum thread is confidently linked to this proposal.