Aave

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title: “Chaos Labs V2 Ethereum and Polygon LT Reductions” author: “Chaos Labs” discussions: “https://governance.aave.com/t/arfc-v2-ethereum-and-polygon-lt-reductions-12-04-2023/15747”

Simple Summary

A proposal to reduce Liquidation Thresholds on Aave V2 Ethereum and Polygon.

Motivation

Following the v2 deprecation framework, Chaos Labs and Gauntlet advise implementing the subsequent parameter changes to the frozen assets on Aave v2 Ethereum and Polygon

As Liquidation Threshold reductions may lead to user accounts being eligible for liquidations upon their approval, we want to clarify the full implications to the community at each step. We will publicly communicate the planned amendments and list of affected accounts leading to the on-chain execution.

The full governance post can be found here

Specification

Chaos and Gauntlet align on the aggressive approach to expedite the deprecation of several assets on V2, with a potential for ~$120K in total value eligible for liquidation, at the time of posting this proposal

Aave v2 Ethereum

Asset	Current LT	Chaos Rec LT	Value Liquidated ($)	Accounts Liquidated
CRV	30%	25%	126	1
CVX	24%	0.05%	33.24K	2
DPI	5%	0.05%	-	-
ENJ	44%	0.05%	4.64K	14
ENS	38%	30%	2.7K	9
LINK	80%	75%	3.63K	9
MANA	29%	0.05%	25.55K	13
MKR	28%	26%	72	2
REN	18%	0.05%	2.24K	6
SNX	30%	0.05%	10.55K	20
UNI	55%	40%	2.16K	14
YFI	32%	0.05%	20.24K	10
ZRX	24%	18%	-	-
1INCH	1%	0.05%	-	-
BAL	1%	0.05%	-	-
BAT	1%	0.05%	-	-
KNC	1%	0.05%	-	-
FEI	1%	0.05%	-	-
xSUSHI	1%	0.05%	-	-

	Value liquidated	Accounts liquidated
Total	$106,024	103

Aave v2 Polygon

Asset	Current LT	Chaos Rec LT	Chaos Rec LTV	Value Liquidated ($)	Accounts Liquidated
SUSHI	45%	0.05%	0%	13	3
DPI	45%	0.05%	0%	40	2
BAL	45%	0.05%	0%	1.2K	15
CRV	45%	0.05%	0%	127	11
GHST	40%	0.05%	0%	7.7K	10
LINK	65%	0.05%	0%	6.6K	26

	Value liquidated	Accounts liquidated
Total	$15,600	69

References

• Implementation: AaveV2Ethereum, AaveV2Polygon
• Tests: AaveV2Ethereum, AaveV2Polygon
• Snapshot: Direct-to-AIP
• Discussion

Copyright

Copyright and related rights waived via CC0.