Gauntlet is notifying the community about a large position on Optimism Aave v3 held by address
0x997fd5f16c9717007244e15e1e47db5f37bd53c2. As of 1/3/2022, the borrower has a health factor of 1.01. There are lower liquidation concerns since the position is collateralized by USDC. However, Gauntlet wanted to notify the community since the address represents 10% of TVL and 34% of borrow positions on OP Aave v3.
As noted by the chart, the address has been withdrawing collateral from the protocol since Dec 29th. This past week, they have lowered their collateral position from $24M to $11.6M. We are not certain why the address would lower their collateral to a health factor of 1.01 while borrowing the volatile asset WETH.