# \[ARC\] Stablecoin Volatility Risk Parameter Recomendations

**URL:** <https://governance.aave.com/t/arc-stablecoin-volatility-risk-parameter-recomendations/12241>\
**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:** 5

<div class="post-metadata">

**Author:** ![bgdlabs](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/bgdlabs/32/1829_2.png) [@bgdlabs](https://governance.aave.com/u/bgdlabs)\
**Post date:** [March 11, 2023, 10:19am UTC](https://governance.aave.com/t/arc-stablecoin-volatility-risk-parameter-recomendations/12241/5 "2023-03-11T10:19:15Z")

</div>

From the technical side, we are actively coordinating with the risk providers regarding a course of action, especially on everything that requires the usage of functions under the control of the emergency admin roles on Aave v2 and v3 instances.

As an initial step, and given the Aave Guardian has the emergency capability to freeze (only stopping new deposits and borrowings) and set LTV to 0 on stablecoins on Aave v3 Avalanche, we think it could be a good measure, with the only risk of stopping refilling of collateral on volatile assets. This would be just temporary, as the freezing could be reverted relatively fast.

---

_[View the full topic](https://governance.aave.com/t/arc-stablecoin-volatility-risk-parameter-recomendations/12241)._