[ARFC] Adjust Risk Parameters for Aave V2 and V3 on Polygon
Vote Result: NO
Rationale
Our rationale on the Joint Incentive Program proposal stated that we would vote NO against any proposal to remove Aave from Polygon as a result of the pre-PIP issues, especially given that these issues have, in our opinion, been resolved.
There has been no material change since that rationale, and while we do agree that it is prudent for Aave to assess its presence on Polygon given dwindling activity, setting LTV to 0 across all markets is too drastic a move in our opinion. A more measured approach with accompanying data would make more sense to us.
The protocol revenue coming from Polygon is indeed low, but we are not comfortable with alienating such a large user base, even though setting LTV to 0 will not affect existing borrowers. A gradual offboarding, if necessary, would be a better middle ground. Moreover, a lot of the discussion around the pre-PIP did not involve Aave users on Polygon, and we do not think they should be impacted because of bad blood between the communities.
Therefore, we will vote NO against this proposal.