Generalized LT/LTV Reduction on Aave
Vote Result: YES
Rationale
Reducing debt asset volatility is important but only if it is balanced with incremental reductions in LT combined with sufficient notice to users, which will mitigate the amount of liquidations while reducing the potential of bad debt on Aave. Implementing this LT/LTV reduction in incremental steps while constantly giving the community enough time to react and de-risk their positions is important. The first increment of 1% leading to a liquidation of only $9k in the first step is acceptable and the community has had enough notice to de-risk since this proposal was published on 28th Feb. Therefore, we will vote YES in favour of this proposal.