Risk Parameter Updates 2022-03-22
01Summary
Batch update of risk parameters (LTV, Liquidation Threshold, Liquidation Bonus) across 5 Aave V2 assets to align with the community-chosen Moderate risk level and optimize capital efficiency while maintaining protocol safety.
- Type
- parameter change
Key changes
- Adjust LTV (Loan-to-Value) ratios for AAVE (0x7Fc66500c84A76Ad7e9c93437bFc5Ac33E2DDaE9) to 62.50%(high)
- Adjust Liquidation Threshold for AAVE to 70.00%(high)
- Adjust Liquidation Bonus for AAVE to 10.750%(high)
- Adjust LTV for DPI (0x1494CA1F11D487c2bBe4543E90080AeBa4BA3C2b) to 65.00%(high)
- Adjust Liquidation Threshold for DPI to 70.00%(high)
- Adjust Liquidation Bonus for DPI to 10.750%(high)
- Adjust LTV for ENS (0xF629cBd94d3791C9250152BD8dfBDF380E2a3B9c) to 60.00%(high)
- Adjust Liquidation Threshold for ENS to 70.00%(high)
Notable concerns
- Parameter changes affect collateral risk profiles and may impact borrowing capacity for users holding these assets
- Changes are based on Gauntlet's agent-based simulations which depend on daily-varying market data inputs
Generated by Kvorum
02Description
Simple Summary
A proposal to adjust six (6) total risk parameters including LTV, Liquidation Threshold, and Liquidation Bonus across five (5) Aave V2 assets.
Abstract
This proposal is a batch update of risk parameters to align with the the Moderate risk level chosen by the Aave community. These parameter updates are a continuation of Gauntlet's regular parameter recommendations.
Motivation
This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.
Gauntlet's parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Parameter recommendations seek to optimize for this objective function. Our agent-based simulations use a wide array of varied input data that changes on a daily basis (including but not limited to, asset volatility, asset correlation, asset collateral usage, DEX / CEX liquidity, trading volume, expected market impact of trades, and liquidator behavior). Gauntlet's simulations tease out complex relationships between these inputs that cannot be simply expressed as heuristics. The individual collateral pages on the Gauntlet Risk Dashboard cover other key statistics and outputs from our simulations that can help with understanding interesting inputs and results related to our simulations.
Specification
Our recent market downturn report showed that many collaterals are resilient to insolvencies, as our simulation models have predicted. We will continue to adjust risk parameters to drive increases in capital efficiency while maintaining protocol risk at safe levels.

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 liquidation bonus, 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
The proposal describes a routine Gauntlet risk-parameter update calling configureReserveAsCollateral on the LendingPoolConfigurator for five assets, adjusting LTV, Liquidation Threshold, and Liquidation Bonus. The decoded calldata shows exactly five calls to this function on the correct target contract, each passing three parameters (LTV, LT, LB) with values in the typical percentage range (60-65% LTV, 70-75% LT, 106.5-107.5% LB), consistent with 'Moderate risk' incremental adjustments. The target contract address matches (case-insensitive). No unrelated transfers, role grants, or unexpected targets appear in the calldata. The only notable inconsistency is the summary's claim of 'six (6) total risk parameters' when the calldata technically sets 15 parameter values (3 per asset × 5 assets); this is likely an artifact of how many distinct values actually change versus being resubmitted at their existing value, a detail not verifiable from the calldata alone. This is a minor labeling/count issue rather than a substantive misrepresentation of magnitude or direction, so it does not rise above low severity. Confidence is medium because the exact underlying token identities and prior parameter values (needed to confirm the 'six' claim precisely) are not available in the provided data, but the core action set (target contract, function, and parameter types) fully matches the description.
Discrepancies
- lowmisleading phrasing
The summary states 'six (6) total risk parameters' are being adjusted, but the calldata sets three parameters (LTV, Liquidation Threshold, Liquidation Bonus) for each of five assets — 15 parameter fields in total. Without on-chain baseline values it's unclear which specific fields actually change value versus being re-submitted unchanged (a common pattern for this function), so the '6' figure cannot be fully reconciled, but it is likely a summarization/count inconsistency rather than a substantive error.
“A proposal to adjust six (6) total risk parameters including LTV, Liquidation Threshold, and Liquidation Bonus across five (5) Aave V2 assets.”
Generated by Kvorum
04Actions
- Target
- 0x311b…5756
- Value
- 0 wei
- Function
- configureReserveAsCollateral(address,uint256,uint256,uint256)
- Arguments
{ "0": "0x7Fc66500c84A76Ad7e9c93437bFc5Ac33E2DDaE9", "1": "6250", "2": "7000", "3": "10750" }- Calldata
- Target
- 0x311b…5756
- Value
- 0 wei
- Function
- configureReserveAsCollateral(address,uint256,uint256,uint256)
- Arguments
{ "0": "0x1494CA1F11D487c2bBe4543E90080AeBa4BA3C2b", "1": "6500", "2": "7000", "3": "10750" }- Calldata
- Target
- 0x311b…5756
- Value
- 0 wei
- Function
- configureReserveAsCollateral(address,uint256,uint256,uint256)
- Arguments
{ "0": "0xF629cBd94d3791C9250152BD8dfBDF380E2a3B9c", "1": "6000", "2": "7000", "3": "10650" }- Calldata
- Target
- 0x311b…5756
- Value
- 0 wei
- Function
- configureReserveAsCollateral(address,uint256,uint256,uint256)
- Arguments
{ "0": "0x956F47F50A910163D8BF957Cf5846D573E7f87CA", "1": "6500", "2": "7500", "3": "10650" }- Calldata
- Target
- 0x311b…5756
- Value
- 0 wei
- Function
- configureReserveAsCollateral(address,uint256,uint256,uint256)
- Arguments
{ "0": "0x0F5D2fB29fb7d3CFeE444a200298f468908cC942", "1": "6150", "2": "7500", "3": "10750" }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| C10xc17c…64e1 | For | 103.3K | 31.60% | — | 5y ago |
| AF0xafda…3a6e | For | 93.4K | 28.57% | — | 5y ago |
| DD0xdd45…4cc5 | For | 55.5K | 16.97% | — | 5y ago |
| B80xb8c2…4f87 | For | 19K | 5.80% | — | 5y ago |
| 1B0x1beb…d025 | For | 17.1K | 5.24% | — | 5y ago |
| 1B0x1b13…65ce | For | 12.5K | 3.83% | — | 5y ago |
| 070x0703…961b | For | 10K | 3.06% | — | 5y ago |
| 7A0x7ae1…e585 | For | 10K | 3.06% | — | 5y ago |
| 680x683a…6c02 | For | 6K | 1.83% | — | 5y ago |
| DD0xdd65…9abc | For | 50.1 | 0.02% | — | 5y ago |
| 1C0x1c63…f3c3 | For | 36.6 | 0.01% | — | 5y ago |
| A50xa519…c81b | For | 16.7 | 0.01% | — | 5y ago |
| 480x48c7…1de3 | For | 0.5 | 0.00% | — | 5y ago |
| 4D0x4d47…3ad9 | For | 0.1 | 0.00% | — | 5y ago |
| 110x110e…c8ab | For | 0.1 | 0.00% | — | 5y ago |
| D00xd06a…dd97 | For | 0.1 | 0.00% | — | 5y ago |
| D10xd14d…34f4 | For | 0.1 | 0.00% | — | 5y ago |
| 6D0x6de8…91c8 | For | 0.1 | 0.00% | — | 5y ago |
| 980x9830…0475 | For | 0.1 | 0.00% | — | 5y ago |
| D60xd675…5df8 | For | 0.1 | 0.00% | — | 5y ago |
| 3C0x3c80…519b | For | 0.1 | 0.00% | — | 5y ago |
| 730x7343…f28a | For | 0.1 | 0.00% | — | 5y ago |
| E80xe84f…2766 | For | 0.1 | 0.00% | — | 5y ago |
| 200x2069…a62d | For | 0.1 | 0.00% | — | 5y ago |
| 7A0x7a67…8c0e | For | 0 | 0.00% | — | 5y ago |
| EA0xeac7…10e7 | For | 0 | 0.00% | — | 5y ago |
| 060x068d…cf08 | For | 0 | 0.00% | — | 5y ago |
| 4A0x4a1d…f715 | For | 0 | 0.00% | — | 5y ago |
| 970x97d5…0815 | For | 0 | 0.00% | — | 5y ago |
| AB0xabca…9567 | For | 0 | 0.00% | — | 5y ago |
| CD0xcdd0…efdf | For | 0 | 0.00% | — | 5y ago |
| 1B0x1b88…35a7 | For | 0 | 0.00% | — | 5y ago |
| 700x70dd…9aed | For | 0 | 0.00% | — | 5y ago |
| 050x0586…6956 | For | 0 | 0.00% | — | 5y ago |
| B30xb3a6…8c8d | For | 0 | 0.00% | — | 5y ago |
| 410x413f…971d | For | 0 | 0.00% | — | 5y ago |
| 030x0315…e8b3 | For | 0 | 0.00% | — | 5y ago |
| 6B0x6bf3…82e3 | For | 0 | 0.00% | — | 5y ago |
| 7E0x7ec0…3662 | For | 0 | 0.00% | — | 5y ago |
| B80xb8fa…e675 | For | 0 | 0.00% | — | 5y ago |
| 360x3617…2d0b | For | 0 | 0.00% | — | 5y ago |
| 130x13ac…15f0 | For | 0 | 0.00% | — | 5y ago |
| E40xe41e…20e9 | For | 0 | 0.00% | — | 5y ago |
07Forum
No forum thread is confidently linked to this proposal.
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