Why is there no feature to auto-swap supplies to higher LTV, triggered on account health?
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anyone? u r all liquidators?
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no one has any answers here?
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Good evening,
Aave.com itself isnt offering this kind of feature but it could be that other protocols build on top are offering this kind of feature like DefiSaver, Instadapp and many more. I would recommend checking them out.
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Yes I know. The question is: why?
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Sounds stupid, but probably no one developed it yet. And i don’t think its really matching from what the Aave Companies are doing for the protocol.
Instead I would have expected someone else developing it on top.
But i am not a representive of AC, just my own opinion.
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I think it would bring a lot more people to the protocol if they weren’t at such risk of the aave treasury taking their supplies.
And, it would hugely benefit current users/suppliers.
It seems it would also go a long way to preventing “liquidation spirals” that destroy so much value just to benefit a handful of “liquidators”.
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Folks, this is some serious BS. AAVE Treasury is taking arbitrary amounts (via their own set penalties) from accounts that are perfectly fine if they would instead just swap to a higher LTV supply(ies).
All of a sudden the markets drop like 14% in a minute and AAVE Treasury is there to scalp your account at high fees. They paid $14 in MATIC transaction fee to scalp all my MATIC just earlier this morning, when they could have simply switched some of it into stablecoin and saved my account.
They could have also taken the WETH at a 5% penalty, but instead took the MATIC at a 7% penalty and took way more than was needed to bring the account to >1 Health Factor.(increasing their “penalty” gains!)
As of now AAVE is HOSTILE to USERS. I don’t see this experiment lasting much longer. If AAVE doesn’t add this feature soon and fix these arbitrary scalpings, I don’t see any incentive for an outside developer to develop it for AAVE. They will just fork the AAVE code and build it into a new product!
If you’re uncomfortable with the risk you’re taking (which you obviously are, as you’re complaining about being liquidated here) then you should set yourself a higher health factor to begin with.
This is 100% your fault.
Nobody took “more”of anything.
Manage your health factor accordingly. You’re responsible for it.
If you want a tool to be developed, either do it yourself or petition the DAO to consider developing it. Or, as already said, there are DApps that already offer automatic replenishment of collateral. Use them.
The whole cryptocurrency space is about taking responsibility away from the banks, so you have more freedoms with your finances but then people come here and cry about not being responsible. It’s better satire than anyone could write. You can’t make this stuff up.
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Oh yeah because I am up 24/7 monitoring all the crypto markets for 15% drops that happen in minutes. Please.
The “apps” I’ve seen require large supply or debt minimums. Do you know of one that works on an account with say $200 in supplies? I’ll wait.
I notice that you don’t address one substantive point, like that the penalties are high, arbitrary, and subject to change without notice by aave, who is the one benefiting from the taking of user supplies.
My guess is that you are a liquidator making gains by taking others’ supplies.
lol, this thread and others and posts on Twitter/x have been around for months
aave shows basically no interest in fixing this, probably because they are “profiting” off the arbitrary takings of user supplies
remember, the whole point of this thread is that the accounts are fundamentally healthy and can be “fixed” merely by swapping some low LTV supplies to higher LTV supplies without loss
instead, aave takes/steals user supplies at high penalty for their own gain
aave is known to manipulate LTV values, penalty rates, and collateral ability of a supply basically without notice
then they take user supplies
sounds good, but you’ll notice that matic supplies are currently disabled on polygon v3 aave…as of today
so i can’t even increase my supply
lol
i wonder how many liquidation penalties the treasury took on this today from users who are no longer able to increase their matic supply
I don’t address it because it’s a blatant lie. It’s almost as writing yourself into a rage on Twitter without knowing anything about the process isn’t very good to understand the process.
Liquidation penalty changes are proposed by the risk assessment provider, published here in the forum, voted on twice by the DAO and then changed.
“AAVE” as a DAO votes on it. But I think you think that “AAVE” means some shadowy entity that takes the supply from users. You fundamentally misunderstand the liquidation process and who gets what in terms of penalties.
During the whole liquidation process AAVE - the public DAO of which all decisions are on chain for you to verify - gets nothing. The AAVE treasury gets nothing. The liquidation ist made by the liquidator, who pays back your loan because you were reluctant to manage your health factor properly, who gets the liquidation bonus. All of which is to keep the protocol safe from default.
This liquidation bonus, by the way, has only changed to the benefit of the user for WMATIC on v3. It was initially 10% and was amended over time to be what it is now at 7%.
You need to educate yourself. It’s really that simple. Educate yourself on how to manage risk, educate yourself on how AAVE works.
Raging in the forum or on Twitter because you made a bad decision doesn’t help you or anyone.
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As @neptune already said everything I am going to close this thread before this is going to escalate. If you miss this feature propose it to AVARA which is the company behind the Aave protocol and hosting the frontend. You can find an email adress on the website or suggest it in the official discord. Or look for tools that offer what you need or keep your security levels higher, especially when you know that cryptocurrencies are extremely volatile.
If you don’t think the Aave protocol is good enough for you anymore there are plenty others for examples Aave forks that may offer what you are looking for, but beware security isn’t something that can be forked.
And regarding frozen assets, you are always able to keep your HF safe by supplying another asset supported by the protocol. And no, nobody here is profiting from liquidations, only the person liquidating. Which needs to be done in order to keep up a healthy lending protocol.
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OK, so aave sets it, like I said. They are arbitrary and subject to change without notice in the UI.
During the whole liquidation process AAVE - the public DAO of which all decisions are on chain for you to verify - gets nothing. The AAVE treasury gets nothing.
So, I guess when polygonscan shows supply moving from my address to t0he Aave: Treasury V3 address, it’s lying.
Also, what guarantee is there that aave developers or other governance users aren’t the ones initiating liquidations? None, as far as I can tell.
This liquidation bonus, by the way, has only changed to the benefit of the user for WMATIC on v3. It was initially 10% and was amended over time to be what it is now at 7%.
Ok, cool, but you can’t even add WMATIC supply to v3 right now.
You need to educate yourself. It’s really that simple. Educate yourself on how to manage risk, educate yourself on how AAVE works.
Nah, you need to read the thread, especially the OP. The whole point of this thread is that liquidation is typically not needed as the account could just swap low LTV supply to high LTV supply at no penalty/loss. Obviously this is preferable to every user except (greedy) liquidators who are looking to make money off others’ supplies.
Raging in the forum or on Twitter because you made a bad decision doesn’t help you or anyone.
You going off-topic in my thread is poor form. I put it at like 95%+ that you are a liquidator taking supply from users that could have simply swapped low LTV supplies to high LTV supplies at no loss. Of course, then you don’t get risk free gains, but users get a way better UX and aave gains a lot of good will.
False, please pay attention to the OP instead of neptune’s disrailment.
All that is needed is to swap low LTV to high LTV supply.
See you know what to do, monitor your positions, maybe use HAL to get notifications or build a better monitoring system. It’s not like that you are the only one getting liquidated. It is an important feature and any lending protocol needs it to stay healthy.
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You expect people to be up 24/7 monitoring their aave positions.
That is hilarious.
The solution is way simpler and is curiously barely addressed: swap low LTV to high LTV.
Nothing really wrong with liquidations. The problem is arbitrary penalties.
The only time a liquidation is really necessary is when you are at the max LTV supply, which is basically never since it would be pure stablecoin.
How do you think the rest, suppyling billions into AAVE manage their positions? Probably they have a great monitoring system. This is DeFi you are responsible for everything you do.
I do agree this would be a great feature, but like i also said, there are tools offering this and i am using them, so i can sleep without the need to monitor 24/7 and still feel comfy.
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