LlamaRisk supports this proposal and the specific parameters proposed by @ChaosLabs.
This is a measured reaction to current developments and avoids having an undue negative impact on Aave V3 Scroll users.
Matching the supply and borrow caps will ensure no additional exposure to Scroll is obtained. Simultaneously, increasing the reserve factor will make it less attractive for suppliers to deposit, which reduces available liquidity and, in turn, incites borrowers to repay due to increased utilisation. This is necessary because of the deteriorating liquidity conditions observed on Scroll.
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.