Aave

Summary

A proposal to make parameter changes on all V3 deployments and v2 Ethereum. For more details, see the full forum post here.

Motivation

Raising Uopt for USDT, DAI, FRAX to 90% can increase borrow revenue without adding excess risk. The market would need to move considerably abnormally for liquidation capacity to come into question for stablecoin collateralized liquidations for 90% Uopt.

Raising RF from 20% to 25% for USDC, USDT, LUSD on v2 Ethereum would help bring RF parity for USDC, USDT, and LUSD to DAI, and help encourage supply migration from v2 to v3 (given AIP-306 raised DAI RF on V2 Ethereum to 25%.)

Specification

1. Raise Uopt to 90% for USDC, USDT, DAI, FRAX, where applicable, across all v3 deployments
2. Raise RF from 20% to 25% for USDC, USDT, LUSD on v2 Ethereum

Disclaimer: Gauntlet reserves the right to not move forward with any parameter changes recommended in Snapshot polls, if market conditions change meaningfully. We will publish AIP for this change after the unfreeze/unpause of v2 and v3 markets from the security incident on Nov 4.

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