Aave

Summary

Gauntlet recommends to freeze CRV and set CRV LTV -> 0 on Aave v2 Ethereum.

Motivation

Gauntlet has been looking into the risk profile of 0x7a16ff8270133f063aab6c9977183d9e72835428. This account borrows roughly $63m of USDST against $190m of CRV, as of 2023/06/13. We recommend to 1. freeze CRV collateral and 2. set Curve LTV to 0, to prevent the account from continuing to add CRV and increasing concentration risk, due to the decrease in CRV liquidity over the past few months.

Specification

Freeze CRV, set CRV LTV -> 0 on Aave v2 Ethereum.

Implementation

The proposal implements changes on Aave v2 Ethereum using the freezeReserve and configureReserveAsCollateral methods of the LendingPoolConfigurator.

Copyright

Copyright and related rights waived via CC0.

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