[ARFC] - Chaos Labs Risk Parameter Updates - Aave V3 Optimism - 2023.03.22
Vote Result: YES
Rationale
Increasing LTVs and LTs for wBTC and DAI on v3 Optimism leads to a projected borrow increase of ~$155,000, with no increase in VaR and Extreme VaR, making this proactive move beneficial for Aave. Reducing the liquidation bonus for wBTC to be more in line with assets of a similar level of risk and liquidity (USDC and ETH) makes sense. A potential point of concern is the risk in ~40% of the on-chain supply of WBTC on Optimism being currently held on Aave. However, Chaos Labs’ analysis indicates that there is adequate on-chain liquidity to support significant liquidations.
Therefore, we will vote YES in favour of this proposal.