# \[ARC\] Risk Parameter Recommendations for Aave V2 ETH (2022-11-22)

**URL:** https://governance.aave.com/t/arc-risk-parameter-recommendations-for-aave-v2-eth-2022-11-22/10757
**Category:** General
**Created:** [November 22, 2022, 9:45pm UTC](https://governance.aave.com/t/arc-risk-parameter-recommendations-for-aave-v2-eth-2022-11-22/10757 "2022-11-22T21:45:26Z")
**Posts on this page:** 1
**Showing post:** 9

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### Author: ![fig](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/fig/32/7063_2.png) [@fig](https://governance.aave.com/u/fig)
#### Post date: [November 23, 2022, 12:27am UTC](https://governance.aave.com/t/arc-risk-parameter-recommendations-for-aave-v2-eth-2022-11-22/10757/9 "2022-11-23T00:27:49Z")

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While this could have been worse - in terms of bad debt - it is an important reminder of the value of risk management. Additionally, today’s chaos is a reminder of how _public_ our protocols health is.

Transparency can be a strength of the protocol and other days, a weakness. Publicity of this “trading strategy” drew more eyes, attention, and negative sentiment toward the protocol’s native token.

I would also not be surprised if Avi is reading this - so hey, well done.

* * *

We are supportive of changes proposed by @Pauljlei and V3 supply caps by @OriN and encourage more proactive efforts, preparing users for the deployment of V3 mainnet.

There seem to be more reminders; the sooner this market is released - the more control we may have. @bgdlabs we will work alongside you to make this process easier, including today’s [proposal](https://governance.aave.com/t/bgd-upgrade-of-aave-v3-periphery-to-3-0-1-across-networks/10744).

I am grateful for discussions happening in parallel such as @monet-supply’s thread. Today, and any day working alongside a DAO is a reminder of improving processes and controls 😅

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_[View the full topic](https://governance.aave.com/t/arc-risk-parameter-recommendations-for-aave-v2-eth-2022-11-22/10757)._