LlamaRisk supports the proposed changes for the full deprecation of DPI across all Aave deployments. Given Chainlink’s decision to deprecate the price feed and the negligible exposure of DPI on the protocol, this is a necessary further step.
We agree that implementing a fixed oracle price is a good adaptation to these circumstances. It provides an effective way to manage the remaining positions without the complexity of maintaining a dynamic feed for an asset with minimal liquidity and usage.
The risks associated with this approach are minimal. Since all DPI markets are frozen, the potential overpricing of DPI as collateral poses no new risk, as additional debt cannot be originated against it. Conversely, underpricing the collateral will not create unwanted arbitrage opportunities, as new borrowing of DPI is disabled.
Disclaimer
This review was independently prepared by LlamaRisk, a DeFi risk service provider funded in part by the Aave DAO. LlamaRisk is not directly affiliated with the protocol(s) reviewed in this assessment and did not receive any compensation from the protocol(s) or their affiliated entities for this work.
The information provided should not be construed as legal, financial, tax, or professional advice.