[ARFC] Chaos Labs Risk Parameter Updates - MAI on Aave V3 - 2023.7.23
Simple Summary
A proposal to reduce the Supply and Borrow Caps and Debt Ceiling for MAI on Aave V3 Avalanche
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:
- Set supply caps at the current supply in each deployment
- Set borrow cap at the current borrow in each deployment
- 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 ($) | Recommended Debt Ceiling ($) |
|---|---|---|---|---|---|---|
| Avalanche | 700,000 | 20,000 | 460,000 | 10,000 | 2,000,000 | 10,000 |
Note: Given the current usage on Polygon, these recommendations effectively disable further usage of MAI as collateral.
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this ARFC.
Copyright
Copyright and related rights waived via CC0
| Voter | Cast Power | Vote & Rationale |
|---|---|---|
 0x329c...543eD4 | 247,571 | YAE |
 FranklinDAO (Prev. Penn Blockchain) | 106,783 | YAE |
 0x62a4...96816a | 81,061 | YAE |
 0xB83b...Fbcf5C | 80,003 | YAE |
 0x13BD...138548 | 80,002 | YAE |
VOTE POWER
Proposal Status
- Thu July 27 2023, 07:42 amVoting Period Starts
- Sun July 30 2023, 07:42 amEnd Voting Period
Current Results
1-YAE
678,453.002
2-Abstain
46.727
3-NAY
45.303