# \[ARFC\] Avalanche v2 Reserve Factor Adjustment
**URL:** https://governance.aave.com/t/arfc-avalanche-v2-reserve-factor-adjustment/17040
**Category:** Governance
**Created:** [March 19, 2024, 8:38pm UTC](https://governance.aave.com/t/arfc-avalanche-v2-reserve-factor-adjustment/17040 "2024-03-19T20:38:06Z")
**Posts on this page:** 14
**Page:** 1
### Author:  [@karpatkey\_TokenLogic](https://governance.aave.com/u/karpatkey_TokenLogic)
#### Post date: [March 19, 2024, 8:38pm UTC](https://governance.aave.com/t/arfc-avalanche-v2-reserve-factor-adjustment/17040/1 "2024-03-19T20:38:06Z")
* * *
title: [ARFC] Avalanche v2 Reserve Factor Adjustment
author: @karpatkey_TokenLogic @ChaosLabs
created: 2024-03-19
* * *
# Summary
This publication proposes periodically increasing the Aave v2 Avalanche Reserve Factor (RF) to encourage users to migrate to Aave v3.
# Motivation
Similar to other Aave v2 deployments, this publication seeks to periodically increase the RF across the last remaining v2 deployment, Avalanche.
In doing so, the first AIP will align the RF values with the Ethereum v2 deployment, and each subsequent AIP publication will increase the RF by a further 5.00% up to a maximum of 99.99%. To minimise governance overhead, the Ethereum v2 and Avalanche v2 updates will be combined, with the later implemented by the Guardian. There remains only one to two Polygon RF updates and these will be submitted separately.
Do note increasing the RF parameter does not directly affect user’s health factor, and this method has already been implemented on [Polygon v2](https://governance.aave.com/t/arfc-reserve-factor-updates-polygon-aave-v2/13937) and [Ethereum v2](https://governance.aave.com/t/arfc-ethereum-v2-reserve-factor-adjustment/16764).
# Specification
The below shows the current and proposed RF for each reserve.
| Asset | Current RF | Initial RF Increase | Subsequent RF Increase |
| --- | --- | --- | --- |
| DAI.e | 10.00% | 35.00% | 40.00% |
| USDC.e | 10.00% | 35.00% | 40.00% |
| USDT.e | 10.00% | 35.00% | 40.00% |
| wAVAX | 15.00% | 35.00% | 40.00% |
| WBTC.e | 10.00% | 40.00% | 45.00% |
| WETH.e | 10.00% | 35.00% | 40.00% |
Upon implementing this proposal, a subsequent AIP will be submitted every 2 weeks that increases the RF by 5.00% up to a maximum of 99.99%, subject to market conditions.
# Disclosure
TokenLogic, karpatkey and Chaos Labs receive no payment for this proposal. TokenLogic and karpatkey are both delegates within the Aave community.
# Next Steps
1. Gather feedback from the community.
2. If consensus is reached on this ARFC, escalate this proposal to the Snapshot stage.
3. If Snapshot outcome is YAE, escalate this proposal to AIP stage
4. Subsequent AIP submission are expected to follow every 14 days thereafter, if deemed applicable
# Copyright
Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).
---
### Author:  [@karpatkey\_TokenLogic](https://governance.aave.com/u/karpatkey_TokenLogic)
#### Post date: [March 26, 2024, 9:27pm UTC](https://governance.aave.com/t/arfc-avalanche-v2-reserve-factor-adjustment/17040/2 "2024-03-26T21:27:05Z")
This proposal has been escalated to [Snapshot](https://snapshot.org/#/aave.eth/proposal/0x770ff4e02634c77aaa09952345551168920f7878b32ab03fcef92763a5fb70ab).
**Start date** Mar 27, 2024, 9:03 PM
**End date** Mar 30, 2024, 9:03 PM
---
### Author:  [@defijesus](https://governance.aave.com/u/defijesus)
#### Post date: [April 11, 2024, 3:13pm UTC](https://governance.aave.com/t/arfc-avalanche-v2-reserve-factor-adjustment/17040/3 "2024-04-11T15:13:30Z")
gm,
The next periodic RF update will bring the reserve factors to:
| Asset | Previous Reserve Factor | New Reserve Factor |
| --- | --- | --- |
| DAIe | 35.00% | 40.00% |
| USDCe | 35.00% | 40.00% |
| USDTe | 35.00% | 40.00% |
| WAVAX | 35.00% | 40.00% |
| WBTCe | 40.00% | 45.00% |
| WETHe | 35.00% | 40.00% |
We will be submitting this AIP for voting on April 22nd.
---
### Author:  [@defijesus](https://governance.aave.com/u/defijesus)
#### Post date: [May 6, 2024, 3:40pm UTC](https://governance.aave.com/t/arfc-avalanche-v2-reserve-factor-adjustment/17040/4 "2024-05-06T15:40:39Z")
gm,
The next periodic RF update will bring the reserve factors to:
| Asset | Previous Reserve Factor | New Reserve Factor |
| --- | --- | --- |
| DAIe | 40.00% | 45.00% |
| USDCe | 40.00% | 45.00% |
| USDTe | 40.00% | 45.00% |
| WAVAX | 40.00% | 45.00% |
| WBTCe | 45.00% | 50.00% |
| WETHe | 40.00% | 45.00% |
We will be submitting this AIP for voting on May 7th.
---
### Author:  [@defijesus](https://governance.aave.com/u/defijesus)
#### Post date: [May 24, 2024, 5:10am UTC](https://governance.aave.com/t/arfc-avalanche-v2-reserve-factor-adjustment/17040/5 "2024-05-24T05:10:57Z")
gm,
The next periodic RF update will bring the reserve factors to:
| Asset | Previous Reserve Factor | New Reserve Factor |
| --- | --- | --- |
| DAIe | 45.00% | 50.00% |
| USDCe | 45.00% | 50.00% |
| USDTe | 45.00% | 50.00% |
| WAVAX | 45.00% | 50.00% |
| WBTCe | 50.00% | 55.00% |
| WETHe | 45.00% | 50.00% |
We will be submitting this AIP for voting on May 24th.
---
### Author:  [@system](https://governance.aave.com/u/system)
#### Post date: [June 23, 2024, 5:11am UTC](https://governance.aave.com/t/arfc-avalanche-v2-reserve-factor-adjustment/17040/6 "2024-06-23T05:11:06Z")
This topic was automatically closed 30 days after the last reply. New replies are no longer allowed.
---
### Author:  [@ACI](https://governance.aave.com/u/ACI)
#### Post date: [June 24, 2024, 3:30pm UTC](https://governance.aave.com/t/arfc-avalanche-v2-reserve-factor-adjustment/17040/7 "2024-06-24T15:30:38Z")
---
### Author:  [@Luigy](https://governance.aave.com/u/Luigy)
#### Post date: [June 24, 2024, 3:53pm UTC](https://governance.aave.com/t/arfc-avalanche-v2-reserve-factor-adjustment/17040/8 "2024-06-24T15:53:23Z")
The next periodic RF update will bring the reserve factors to:
| Market | Asset | Current RF | New RF |
| --- | --- | --- | --- |
| Avalanche V2 | DAIe | 50% | 55% |
| Avalanche V2 | USDCe | 50% | 55% |
| Avalanche V2 | USDTe | 50% | 55% |
| Avalanche V2 | WAVAX | 50% | 55% |
| Avalanche V2 | WBTCe | 55% | 60% |
| Avalanche V2 | WETHe | 50% | 55% |
---
### Author:  [@defijesus](https://governance.aave.com/u/defijesus)
#### Post date: [July 12, 2024, 3:29pm UTC](https://governance.aave.com/t/arfc-avalanche-v2-reserve-factor-adjustment/17040/9 "2024-07-12T15:29:04Z")
The next periodic RF update will bring the reserve factors to:
| Asset | Market | Current RF | Proposed RF |
| --- | --- | --- | --- |
| DAI.e | Avalanche v2 | 55.00% | 60.00% |
| USDC.e | Avalanche v2 | 55.00% | 60.00% |
| USDT.e | Avalanche v2 | 55.00% | 60.00% |
| wAVAX | Avalanche v2 | 55.00% | 60.00% |
| WBTC.e | Avalanche v2 | 60.00% | 65.00% |
| WETH.e | Avalanche v2 | 55.00% | 60.00% |
---
### Author:  [@defijesus](https://governance.aave.com/u/defijesus)
#### Post date: [July 26, 2024, 12:04am UTC](https://governance.aave.com/t/arfc-avalanche-v2-reserve-factor-adjustment/17040/10 "2024-07-26T00:04:53Z")
The next periodic RF update (early August) will bring the reserve factors to:
| Asset | Market | Current RF | Proposed RF |
| --- | --- | --- | --- |
| DAI.e | Avalanche v2 | 60.00% | 65.00% |
| USDC.e | Avalanche v2 | 60.00% | 65.00% |
| USDT.e | Avalanche v2 | 60.00% | 65.00% |
| wAVAX | Avalanche v2 | 60.00% | 65.00% |
| WBTC.e | Avalanche v2 | 65.00% | 70.00% |
| WETH.e | Avalanche v2 | 60.00% | 65.00% |
---
### Author:  [@defijesus](https://governance.aave.com/u/defijesus)
#### Post date: [August 21, 2024, 3:25pm UTC](https://governance.aave.com/t/arfc-avalanche-v2-reserve-factor-adjustment/17040/11 "2024-08-21T15:25:49Z")
The next periodic RF update (late August) will bring the reserve factors to:
| Asset | Market | Current RF | Proposed RF |
| --- | --- | --- | --- |
| DAI.e | Avalanche v2 | 65.00% | 70.00% |
| USDC.e | Avalanche v2 | 65.00% | 70.00% |
| USDT.e | Avalanche v2 | 65.00% | 70.00% |
| wAVAX | Avalanche v2 | 65.00% | 70.00% |
| WBTC.e | Avalanche v2 | 70.00% | 75.00% |
| WETH.e | Avalanche v2 | 65.00% | 70.00% |
---
### Author:  [@defijesus](https://governance.aave.com/u/defijesus)
#### Post date: [September 16, 2024, 3:43pm UTC](https://governance.aave.com/t/arfc-avalanche-v2-reserve-factor-adjustment/17040/12 "2024-09-16T15:43:40Z")
The next periodic RF update (late September) will bring the reserve factors to:
| Asset | Market | Current RF | Proposed RF |
| --- | --- | --- | --- |
| DAI.e | Avalanche v2 | 70.00% | 75.00% |
| USDC.e | Avalanche v2 | 70.00% | 75.00% |
| USDT.e | Avalanche v2 | 70.00% | 75.00% |
| wAVAX | Avalanche v2 | 70.00% | 75.00% |
| WBTC.e | Avalanche v2 | 75.00% | 80.00% |
| WETH.e | Avalanche v2 | 70.00% | 75.00% |
---
### Author:  [@clox](https://governance.aave.com/u/clox)
#### Post date: [October 8, 2024, 1:10pm UTC](https://governance.aave.com/t/arfc-avalanche-v2-reserve-factor-adjustment/17040/13 "2024-10-08T13:10:21Z")
The next periodic RF update (Mid October) will bring the reserve factors to:
| Asset | Market | Current RF | Proposed RF |
| --- | --- | --- | --- |
| DAI.e | Avalanche v2 | 75.00% | 80.00% |
| USDC.e | Avalanche v2 | 75.00% | 80.00% |
| USDT.e | Avalanche v2 | 75.00% | 80.00% |
| wAVAX | Avalanche v2 | 75.00% | 80.00% |
| WBTC.e | Avalanche v2 | 80.00% | 85.00% |
| WETH.e | Avalanche v2 | 75.00% | 80.00% |
---
### Author:  [@clox](https://governance.aave.com/u/clox)
#### Post date: [October 23, 2024, 8:35pm UTC](https://governance.aave.com/t/arfc-avalanche-v2-reserve-factor-adjustment/17040/14 "2024-10-23T20:35:17Z")
The next periodic RF update (Late October) will bring the reserve factors to:
| Asset | Market | Current RF | Proposed RF |
| --- | --- | --- | --- |
| DAI.e | Avalanche v2 | 80.00% | 85.00% |
| USDC.e | Avalanche v2 | 80.00% | 85.00% |
| USDT.e | Avalanche v2 | 80.00% | 85.00% |
| wAVAX | Avalanche v2 | 80.00% | 85.00% |
| WBTC.e | Avalanche v2 | 85.00% | 90.00% |
| WETH.e | Avalanche v2 | 80.00% | 85.00% |