We are in favour of setting LTV to 0 even though we think that this may not be the most effective lever given that it can be bypassed on v2.
We are in not in favour of freezing the market at the moment since it will not allow the user to top up his position with collateral in deteriorating liquidity conditions, the user has a good track record of loan repayments and maintaining a healthy position, and will get liquidated if there is a steep price drop which is very possible. However, we do take @WintermuteGovernance’s position into account, and think that over the longer term if LT/LTV reductions do not prove to be good enough incentives for the user to pay his position back, a freeze of the market may be necessary to make sure the position is paid back.
We think LT reductions should be paused for the moment until there is more stability and market conditions are reevaluated. We also agree with Chaos Labs in disabling CRV borrows on Ethereum and Polygon v3.