Aave

Summary

Gauntlet recommends setting CRV LTV -> 0 on Aave v2 Ethereum.

Motivation

Gauntlet has been looking into the risk profile of 0x7a16ff8270133f063aab6c9977183d9e72835428. This account borrows roughly $54m of USDT against $158m of CRV, as of 2023/08/01. We recommend setting CRV LTV to 0 to help impede additional borrowing against existing CRV collateral due to the recent decrease in CRV liquidity.

Specification

Set CRV LTV -> 0 on Aave v2 Ethereum.

Implementation

The proposal modifies the LTV on CRV using the configureReserveAsCollateral method on the LendingPoolConfigurator contract for Aave v2 Ethereum.

Disclaimer

Gauntlet has not received any compensation from any third-party in exchange for recommending any of the actions contained in this proposal.

Copyright

Copyright and related rights waived via CC0.

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