Aave

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title: Chaos Labs Risk Parameter Update - MAI Aave V3 author: Chaos Labs (@ori-chaoslabs, @yonikesel) discussions: https://governance.aave.com/t/arfc-chaos-labs-risk-parameter-updates-mai-on-aave-v3-2023-7-23/14110

Simple Summary

A proposal to reduce the Supply and Borrow Caps and Debt Ceiling for MAI on Aave V3 Polygon, Arbitrum and Optimism

Motivation

In light of MAI’s recent depegging and the insights provided in the Chaos Labs - MAI Depeg Update , we propose a conservative approach, including a temporary reduction in both the supply and borrow caps as well as the debt ceilings. With consideration of the current usage on Aave and existing liquidity, we recommend implementing the following updates:

1. Set supply caps at the current supply in each deployment
2. Set borrow cap at the current borrow in each deployment
3. Set Debt Ceiling at 2*(Liquidity within LB range / MAI LT)

Note: Final recommendations will be rounded for simplicity

Recommendations

Chain	Current Supply Cap	Recommended Supply Cap	Current Borrow Cap	Recommended Borrow Cap	Current Debt Ceiling ($)	Recommended Debt Ceiling ($)
Arbitrum	4,800,000	325,000	2,400,000	250,000	1,200,000	100,000
Optimism	7,600,000	650,000	2,500,000	525,000	1,900,000	130,000
Polygon	2,200,000	900,000	1,200,000	700,000	2,000,000	180,000

Note: Given the current usage on Polygon, these recommendations effectively disable further usage of MAI as collateral.

References

Tests: Tests

Proposal payload implementations:

Arbitrum Payload

Optimism Payload

Polygon Payload

Copyright

Copyright and related rights waived via CC0.