[ARFC] Chaos Labs Risk Parameter Updates - Increase USDe Debt Ceiling on V3 Ethereum - 07.22.2024
Vote Result: YES
Rationale
Given that the debt ceiling has reached its cap and the methodology allows for a further increase, it would make sense to do so. However, Ethena dynamics are still evolving and it is not necessarily the safest asset on Aave; as Chaos Labs has pointed out, the insurance fund is much lower than their recommendation and USDe debt is concentrated in one user, which needs to be monitored very closely. We urge caution with this asset and will cautiously vote YES in favour of this proposal.