283-aave-v2-ethereum-fei-risk-params-update.md

Proposal 283. Aave v2 Ethereum - FEI risk parameters update

Voting link

https://app.aave.com/governance/proposal/?proposalId=283

Governance forum discussion

https://governance.aave.com/t/arfc-chaos-labs-risk-parameter-updates-fei-on-aave-v2-ethereum-2023-6-22/13782

BGD analysis

Proposal types

🔧 📊 params-update

🔮 oracle-addition

Context

This proposal adjusts the LTV and Liquidation Threshold on Aave v2 Ethereum.

Proposal creation

Transaction: https://etherscan.io/tx/0x8e214e629447dcb89498491d31c28e5947ec7cdb09b8cd76eb4e90b80e49cfd5

- id: 283
- creator: 0x329c54289ff5d6b7b7dae13592c6b1eda1543ed4
- executor: 0xee56e2b3d491590b5b31738cc34d5232f378a8d5
- targets: [0xad491ed5a7fb2214c51333c319842dac833ab08b]
- values: [0]
- signatures: [execute()]
- calldatas: [0x]
- withDelegatecalls: [true]
- startBlock: 17801258
- endBlock: 17820458
- strategy: 0xb7e383ef9b1e9189fc0f71fb30af8aa14377429e
- ipfsHash: 0xb3ed114aabdd26aac46ea46eb45215fe26966f59d77b1fe2643134047f9951cc

Aave Seatbelt report

Ethereum

https://github.com/bgd-labs/seatbelt-for-ghosts/blob/main/reports/Aave/0xEC568fffba86c094cf06b22134B23074DFE2252c/283.md

Technical analysis

We have verified the proposal payload does the following changes on Aave v2 Ethereum, by interacting with its PoolConfigurator smart contract:

FEI

• LTV: 65% -> 0%
• Liquidation Threshold: 75% -> 1%
• Liquidation Bonus: 6.5% -> 10%

Additionally, following the rationale HERE, the FEI price feed is replaced with an ad-hoc adapter pricing FEI at 0.95$ (with ETH reference, respecting the requirements of Aave v2 Ethereum).

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.