A proposal to adjust nine (9) total risk parameters across eight (8) Aave V2 assets including LTV, Liquidation Threshold, and Liquidation Bonus.
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-40: Risk Parameter Updates 2021-10-07.
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 Gauntlet’s most recent Monthly Risk Report.
|Parameter||Current Value||Recommended Value|
|BAT Liquidation Threshold||75%||80%|
|CRV Loan To Value||35%||45%|
|CRV Liquidation Threshold||55%||60%|
|ENJ Loan To Value||55%||60%|
|REN Loan To Value||50%||55%|
|SUSHI Loan To Value||30%||45%|
|UNI Loan To Value||55%||60%|
|WBTC Liquidation Bonus||7.5%||6.5%|
|YFI Liquidation Bonus||8%||7.5%|
See below volatility and exchange volume data from 10/07 to 10/14 that were important drivers for the updated parameter recommendations.
|Symbol||10-14 Volatility||10-07 Volatility||Volatility Change||Weekly Average Daily Volume Change (%)|
The community should use Gauntlet’s Risk Dashboard to better understand the updated parameter suggestions and general market risk in Aave V2.
- Initiate a Snapshot immediately since the community has already weighed in on changes of this nature recently.
- Targeting an AIP on 2021-10-18th