KVORUM
aaveSource: Aave governor v2 · #72

Aave Arc Market - Update Asset Listing Risk Parameters

executedMay 12, 2022, 11:34 PM UTCbyD20xd236…4fa6

01Summary

AISummary by Kvorumclaude-haiku-4-5

Update Aave Arc market risk parameters (LTV and Liquidation Threshold) to match Aave mainnet V2 market levels as determined by Gauntlet, with quarterly reviews planned. Also reimburse proposers 15 AAVE for gas costs.

Type
parameter change
Funding
$15 AAVE (amount in USD not specified)

Key changes

  • Align LTV parameters on Aave Arc market to match Liquidation Threshold values from Aave mainnet V2 market for multiple assets(high)
  • Reduce Liquidity Penalty to improve capital efficiency(medium)
  • Establish quarterly review cycle to maintain alignment between Aave Arc and mainnet V2 risk parameters(medium)
  • Transfer 15 AAVE from ecosystem reserve to proposers as reimbursement for gas costs(low)

Notable concerns

  • Risk parameters are currently more conservative than mainnet V2 market
  • Aave Arc parameters have not been actively maintained
  • Transition plan to Aave V3 parameters not yet detailed
Contracts0xea512572904c6e65a55bc69754e2b02c055ceccf
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

387 words

Simple Summary

This AIP proposes updating the Aave Arc market Loan to Value (LTV) and Liquidation Threshold to be the same asset listed on mainnet V2 market, as determined by Gauntlet.

Abstract

The risk parameters on the Aave Arc market are currently not being maintained and are more conservative than those belonging to the same asset on the Aave mainnet v2 market. This proposal recommends updating the Aave Arc market LTV parameter to match the LiquidationThreshold of the same asset listed on Aave mainnet v2 market. We intend to re-propose a quarterly update of the risk parameters for the Aave Arc market quarterly in an attempt to keep both markets in sync with Aave mainnet v2 market, or Aave mainnet v3 once live.

Motivation

This risk parameter change is targeting the following improvements on the Aave Arc Market: Align Risk Parameters - The risk parameters on Aave Arc market are currently more conservative and are in need of being updated to better reflect the Aave mainnet v2 market and also the risk profile of the user. Improve UX - Increasing LTV ratios and reducing the Liquidity Penalty enables greater capital efficiency across the market. Given the extra precaution shown when approving Borrowers on the Aave Arc Market, the recommendation is to amend the LTV to reflect the risk profiles of market participants. For now, the intent is to maintain the Aave Arc market in line with the mainent v2 market on a quarterly basis.

Specification

The below table shows the assets listed on the Aave Arc market and their respective risk parameters.

The below table shows the assets listed on the Aave Arc market and their respective risk parameters on the Aave v2 market. This is for comparison purposes only.

The below table shows the assets listed on the Aave Arc market and the proposed risk parameters.

Additionally, this proposal will transfer 15 AAVE from the ecosystem reserve to the proposers. This is to reimburse the proposers for their gas costs.

Implementation

The payload can be found here. Snapshot here and Governance forum discussion here.

Voting

FOR: DO Update the risk parameters on Aave Arc market as per Aave mainnet v2 market

AGAINST: DO NOT change the existing arrangement.

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorumlow confidenceclaude-sonnet-5
Consistent

The proposal executes a single on-chain action: a call to executeQueueTimelock() (decoded as a fallback) on what is presumably the Aave governance executor, which in turn delegatecalls into the payload contract referenced in the Implementation section (ArcUpdateProposalPayload.sol). This is the standard Aave governance pattern where the actual granular actions (setting LTV/LiquidationThreshold per reserve, and the 15 AAVE transfer from the ecosystem reserve) are encoded inside that payload contract's execute() function, not visible as separate decoded calldata entries here. Because only the outer wrapper call is decoded, I cannot verify the specific numeric LTV/LiquidationThreshold values or confirm the exact 15 AAVE transfer amount and recipient against the calldata — there is simply no granular data to compare. Nothing in the single decoded action contradicts the description (target, function name, and lack of arguments are all consistent with an Aave payload execution), so there is no basis to flag a mismatch, but the depth of decoding is insufficient to confirm the specific figures the description claims. This is a common and expected pattern for Aave AIPs, and the proposal links to the actual payload source code for independent verification. Given the lack of granular decoded data, confidence in this comparison is low, and I am not surfacing any discrepancies since none can be substantiated from the available calldata.

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

04Actions

1 total
#0fallback()chain 0x1
Target
0xea51…eccf
Value
0 wei
Function
fallback()
Arguments
{}
Calldata

05Tally

Summed from votes

Voters17
VP participating437.6K
Outcome (current)For
Current support100%

06Voters

17 total

No votes recorded yet.

07Forum

No forum thread is confidently linked to this proposal.