Aave

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title: “MAI/MIMATIC deprecation, 2023.10.31” author: “Gauntlet” discussions: “https://governance.aave.com/t/arfc-gauntlet-recommendation-for-mai-mimatic-deprecation/15119”

Summary

Given MAI/MIMATIC price drop to ~$0.72 and its inability to regain peg for the past few months, Gauntlet recommends to begin deprecation of MAI/MIMATIC. We aim to do so by changing LT and increasing borrow rates to incentivize repayment. Additionally, Gauntlet recommends freezing MAI/MIMATIC and setting MAI/MIMATIC LTV -> 0 on Avalanche, which was not executed in this previous AIP.

Specification

LT reductions

Chain	Asset	Current LT	Recommended LT
avalanche v3	MAI/MIMATIC	0.8	0.01
arbitrum v3	MAI/MIMATIC	0.8	0.01
polygon v3	MAI/MIMATIC	0.8	0.01
optimism v3	MAI/MIMATIC	0.8	0.65

IR recommendations

Adjust Uopt to 0.45, Slope 2 to 300%, RF to 95%

Chain	Asset	Current Uopt	Current Slope2	Current RF	Recommended Uopt	Recommended Slope2	Recommended RF
arbitrum v3	MAI	0.8	0.75	0.2	0.45	3	0.95
avalanche v3	MAI	0.8	0.75	0.2	0.45	3	0.95
optimism v3	MAI	0.8	0.75	0.2	0.45	3	0.95
polygon v3	miMATIC	0.8	0.75	0.2	0.45	3	0.95

Freeze MAI and set LTV -> 0 on Avalanche

Chain	Asset	Action
avalanche v3	MAI/MIMATIC	Freeze Reserve, set LTV -> 0

References

• Implementation: AaveV3Polygon, AaveV3Avalanche, AaveV3Optimism, AaveV3Arbitrum
• Tests: AaveV3Polygon, AaveV3Avalanche, AaveV3Optimism, AaveV3Arbitrum
• Snapshot
• Discussion

Disclaimer

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