174-aave-v2-ethereum-risk-params-update.md

Proposal 174. Aave v2 Ethereum - MKR risk params update

Voting link

https://app.aave.com/governance/proposal/?proposalId=174

Governance forum discussion

https://governance.aave.com/t/arc-chaos-labs-risk-parameter-updates-mkr-on-aave-v2-ethereum-2023-02-17/11948

BGD analysis

Proposal types

🔧 📊 params-update

Context

This proposal updates the risk parameters of MKR on Aave v2 Ethereum.

Proposal creation

Transaction: https://etherscan.io/tx/0xc5d7b9b224bb56757a5b66eb22d076bdee3ca79c17a9b9deb390921eddeccee5

- id: 174
- creator: 0xbc540e0729b732fb14afa240aa5a047ae9ba7df0
- executor: 0xee56e2b3d491590b5b31738cc34d5232f378a8d5
- targets: [0x014b2fc091cad41f5d6a8eeb2fef27852f4a97e7]
- values: [0]
- signatures: [execute()]
- calldatas: [0x]
- withDelegatecalls: [true]
- startBlock: 16784927
- endBlock: 16804127
- strategy: 0xb7e383ef9b1e9189fc0f71fb30af8aa14377429e
- ipfsHash: 0xcce5f7fcad7db1ff6ac26c62dcb85cca41186d8a8eb3e770689ac0aba267d60f

Aave Seatbelt reports

https://github.com/bgd-labs/seatbelt-for-ghosts/blob/main/reports/Aave/0xEC568fffba86c094cf06b22134B23074DFE2252c/174.md

Technical analysis

From a technical perspective, we have verified the proposal payload changes the following risk parameters by interacting with the PoolConfigurator of Aave v2 Ethereum:

• MKR:
  • LTV: 62% -> 59%
  • Liquidation Threshold: 67% -> 74%

BGD validations

✅ The code on the proposal payload corresponds to the proposal specification.

✅ The proposal includes a proper tests suite, checking all necessary post-conditions.

✅ BGD reviewed the payload before the proposal was submitted.

✅ Only one payload used via delegatecall

✅ BGD reviewed the procedure followed to submit the proposal.