# \[ARC\] Stablecoin Volatility Risk Parameter Recomendations **URL:** \ **Category:** Governance\ **Created:** [March 11, 2023, 8:13am UTC](https://governance.aave.com/t/arc-stablecoin-volatility-risk-parameter-recomendations/12241 "2023-03-11T08:13:03Z")\ **Posts on this page:** 1\ **Showing post:** 33
**Author:** ![Pauljlei](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/pauljlei/32/3488_2.png) [@Pauljlei](https://governance.aave.com/u/Pauljlei)\ **Post date:** [March 17, 2023, 6:23pm UTC](https://governance.aave.com/t/arc-stablecoin-volatility-risk-parameter-recomendations/12241/33 "2023-03-17T18:23:45Z")
The Avalanche markets have been unfrozen. Thank you to everyone who contributed during this time of uncertainty. Gauntlet has provided a full retro on how the Aave protocol performed during the stablecoin volatility [here](https://governance.aave.com/t/aave-resilient-through-usdc-volatility/12330), including the actions taken by the community to combat the risks. We encourage anyone interested in learning more about this unique market event to review. > [@Aave Resilient Through USDC Volatility](https://governance.aave.com/t/aave-resilient-through-usdc-volatility/12330): > > TL;DR Over the weekend of March 11 - 12, Aave realized $300k in insolvencies due to USDC price volatility. Aave proved resilient and the insolvency was fairly limited. However, if the USDC price declined further, losses could have been much greater if the protocol had not been paused. Gauntlet’s recommendation to pause markets aimed to significantly reduce risk of realized insolvencies. Weighing risk considerations against the strategic and philosophical implications of pausing the protocol, th… --- _[View the full topic](https://governance.aave.com/t/arc-stablecoin-volatility-risk-parameter-recomendations/12241)._