The next step here is risk analysis, so one line in the specification is worth pinning down first: a pause on the TBV contracts stops the exit paths, and those contracts are governed by Babylon governance representatives rather than by Aave DAO. The collateral sits in a vault the depositor controls on Bitcoin, while the path by which it leaves can be closed by a party outside this DAO.
The configuration role on the BTC Vault Swap Spoke is named down to the signers, a 2 of 3 of Llama Risk, Babylon Labs and Aave Labs. The TBV governance role is not: it is a public timelock with advance on-chain notice, with no signer set and no delay stated. Babylon’s existing protocol contracts are controlled by a 6 of 9 multisig.
So two things I would want in the thread before caps and liquidation parameters are proposed: the signer set and threshold behind the TBV governance role, and the timelock delay that applies to a pause. Both are readable from the deployed contracts once those addresses are posted.