# Chaos Labs - Monthly Community Update

**URL:** <https://governance.aave.com/t/chaos-labs-monthly-community-update/11174>\
**Category:** Governance\
**Created:** [December 25, 2022, 9:17am UTC](https://governance.aave.com/t/chaos-labs-monthly-community-update/11174 "2022-12-25T09:17:53Z")\
**Posts on this page:** 1\
**Showing post:** 13

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**Author:** ![ChaosLabs](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/chaoslabs/32/6850_2.png) [@ChaosLabs](https://governance.aave.com/u/ChaosLabs)\
**Post date:** [January 2, 2024, 12:27am UTC](https://governance.aave.com/t/chaos-labs-monthly-community-update/11174/13 "2024-01-02T00:27:01Z")

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# December 2023

## Overview

This update highlights the past month’s activities and proposals.

## Highlights

- Stablecoin IR Updates - we put forward a proposal to increase the stablecoin interest rate parameters across all Aave deployments. Despite recent adjustments under [AIP-375](https://governance-v2.aave.com/governance/proposal/375/), there’s continued volatility in borrow rates. An analysis of the Ethereum V3 platform shows a significant increase in both the supply and borrowing of stablecoins like USDC, USDT, and DAI, indicating that the market positively received these changes. However, the utilization rates post-AIP-375 show that the increase did not stabilize utilization as expected, highlighting the need for further adjustments. The proposal recommends increasing the Slope1 parameter to 6% for stablecoins across all Aave deployments to achieve a more stable and predictable borrowing rate, with a focus on maintaining equilibrium utilization under the UOptimal point.

 ![Untitled - 2024-01-01T192514.945](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/0/05a217bf4214fa6a7dca299781e1c9dd70a4b720.png)

- As part of our ongoing initiative to phase out V2 markets, we’ve put forward an [additional proposal](https://governance.aave.com/t/arfc-v2-ethereum-and-polygon-lt-reductions-12-04-2023/15747), in collaboration with Gauntlet, to lower Liquidation Thresholds for frozen assets on V2 Ethereum and Polygon. Following the implementation of [AIP-404](https://governance-v2.aave.com/governance/proposal/404/), several assets on Aave V2 now have their liquidation thresholds set close to zero, effectively removing their functionality as collateral. These assets include CVX, DPI, ENJ, MANA, REN, SNX, and YFI on Ethereum, and SUSHI, DPI, BAL, CRV, GHST, and LINK on Polygon.

- We published the following proposals for risk parameter updates:

- Provided analysis and supported the following proposals:

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_[View the full topic](https://governance.aave.com/t/chaos-labs-monthly-community-update/11174)._