Title: [ARFC-ADDENDUM] Adjust Risk Parameters for Aave V3 on Polygon
Date: 2025/02/28
Author: Marc Zeller - @ACI
Summary
This proposal addendum seeks governance approval for adjustment of the AIP 254 to reintroduce LTV for non-bridged stablecoins in Aave Polygon V3.
Motivation
Based on service provider and community feedback, this proposal aims to adjust AIP-254 to reintroduce LTV for non-bridged stablecoins in Aave Polygon V3, as they carry no rehypothecation risk. It also reduces stablecoin Emode LT in Aave Polygon V3 due to insufficient stablecoin/stablecoin trading volume to justify the current risk level.
USDT is scheduled to migrate to the USDT0 standard soon, as recently implemented on networks like Arbitrum. To promote stablecoin diversity and taking an optimistic view on the reduction of bridge risk for this asset, this proposal aims to restore an LTV for USDT.
Specification
Risk Parameters have been updated 2025-03-03 due to Chaos feedback.
| Deployment | Asset | Current LTV | Proposed LTV |
|---|---|---|---|
| Polygon V3 | USDT | 0% | 70% |
| Polygon V3 | USDC | 0% | 70% |
- Make all stablecoins in stablecoins emode as non borrowable
We recommend the following LT and LTV for the Stablecoin E-Mode on Polygon Instance.
| Current LTV | Proposed LTV | Current LT | Proposed LT |
|---|---|---|---|
| 93% | 91.25% | 95% | 94.25% |
Next Steps
- Collect feedback from risk service providers for this addendum
- If risk service providers confirm the suggested parameters, escalate to AIP
Disclaimer
The ACI has not been compensated for creating this proposal.
Copyright
Copyright and related rights waived via CC0.