[ARFC] Updating weETH Risk Parameters
Vote Result: YES
Rationale
Increasing weETH’s risk parameters via supply and borrow cap increases, a change to the optimal ratio to 35%, and the increase in RF to 45% will help 1) increase revenue for Aave, and 2) meet demand for weETH as a collateral and borrowing asset that is clearly present on Aave. Given that Chaos’ analysis says that increasing supply and borrow caps carries minimal economic and liquidity risk due to the high amount of liquidity available for withdrawal and the dynamic of being able to atomically mint weETH through wETH and execute liquidations, this risk seems comfortable enough to take for the protocol.
Therefore, we will vote YES in favour of this proposal.