[ARFC] Prime Instance - Restore ETH LTV
Vote Result: YES
Rationale
Reducing ETH’s LTV on Aave v3 Prime prevented new ETH collateral positions from being opened and led to a low amount of the supply cap being filled. All borrowing was driven to e-mode, which is not ideal. Now, due to the change in incentive structure to a periodic Merkl distribution and the elimination of the looping strategy (seen by the low amount of WETH borrowed using WETH), restoring ETH’s LTV to 82% is safe and will re-enable borrowing outside e-mode, bringing more revenue to Aave. Moreover, both risk providers also support this proposal. Therefore, we will vote YES in favour of this proposal.