Aave

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title: “Update GNO Risk Parameters on Aave V3 Gnosis Pool” author: “Aave Chan Initiative” discussions: “https://governance.aave.com/t/arfc-update-gno-risk-parameters-on-aave-v3-gnosis-pool/15613”

Simple Summary

This AIP proposes to update GNO risk parameters on the Aave V3 Gnosis Pool to enable borrowing, fostering Gnosischain decentralization and use-cases for passive income and staking.

Motivation

The goal is to enhance GNO utility by allowing it to be a borrowable asset, thereby supporting Gnosischain’s decentralization. This adjustment also prepares for future GNO LSTs and a possible GNO-correlated e-mode, expanding utility and passive income opportunities for GNO holders.

Specification

The proposed changes aim to make GNO a borrowable asset outside of isolation mode with adjusted risk parameters to accommodate this new functionality:

Risk Parameter	Current Value	Proposed Value
Isolation Mode	Yes	YES
Borrowable in Isolation	No	No
Stable Borrow	No	No
Enable Borrow	No	Yes
Enable Collateral	Yes	Yes
Loan To Value (LTV)	31%	31%
Liquidation Threshold	36%	36%
Liquidation Bonus	10%	10%
Reserve Factor	N/A	20%
Liquidation Protocol Fee	10%	10%
Supply Cap	30000 GNO	30000 GNO
Borrow Cap	N/A	1100 GNO
Debt Ceiling	1M$	1M$
uOptimal	N/A	80%
Base	N/A	0%
Slope1	N/A	15%
Slope2	N/A	80%

References

• Implementation: AaveV3Gnosis
• Tests: AaveV3Gnosis
• Snapshot
• Discussion

Copyright

Copyright and related rights waived via CC0.