The recent days demonstrated the growing concern about the possibility of a potential increase in the exposure Aave has to CRV, and Gauntlet’s proposal is addressing this concern.
However, at the end of the day it is really up to the Aave community to determine on how concerning the situation is, as the last day also demonstrated the commitment of the borrower to repay his debt.
In retrospect, freezing CRV would mitigate some of the CT fud, and would not trigger a liquidation. But forward looking, this observation is not meaningful.
I think the community was provided with all the possible information, and at this point any mathematical model will have hard time to accurately predict the outcome of any of these decisions. It is now up to the community to take the hard decisions of:
- Are the advantages of freezing CRV market outweigh the disadvantages.
- Likewise for reducing LT for CRV.