Aave

Summary

A proposal to make parameter changes on Aave V2 ETH.

Abstract

Many interest rate curves on Aave have not changed for a long time and, in the case of some assets, have never been updated for the lifetime of the asset listing. Given the significant shifts in crypto markets, Gauntlet has evaluated assets on Aave and has identified opportunities to adjust parameters for certain assets for the benefit of the protocol.

Motivation

Among other factors, there are two primary reasons to adjust an interest rate curve:

1. mitigate the risk of 100% utilization in a pool
2. build reserves via protocol revenue to cover insolvencies or other expenses in the future

Specification

Copyright

Copyright and related rights waived via CC0.

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