136-aave-v2-ethereum-risk-parameter-updates.md

Proposal 136. Aave v2 Ethereum - Risk Parameter Updates

Voting link

https://app.aave.com/governance/proposal/?proposalId=136

Governance forum discussion

https://governance.aave.com/t/arc-risk-parameter-updates-for-aave-v2-ethereum-lts-and-ltvs-for-long-tail-assets-2022-12-04/10926

BGD analysis

Proposal types

🔧 📊 params-update

Context

This proposal is an update of risk parameters on Aave v2 Ethereum by Chaos Labs, affecting ENS, MKR, SNX and CRV.

Proposal creation

Transaction: https://etherscan.io/tx/0x1c3bb638e359bdcb9e2b82623adbac5eddab8bef20d323721aef19daee666a37

- id: 136
- creator: 0xbc540e0729b732fb14afa240aa5a047ae9ba7df0
- executor: 0xee56e2b3d491590b5b31738cc34d5232f378a8d5
- targets: [0x33d7385b2bf82b2183afc66dc84ea5f3f2d240d5]
- values: [0]
- signatures: [execute()]
- calldatas: [0x]
- withDelegatecalls: [true]
- startBlock: 16235304
- endBlock: 16254504
- strategy: 0xb7e383ef9b1e9189fc0f71fb30af8aa14377429e
- ipfsHash: 0x31cc3826fed671c95f9522cdac3cb6b6b9bf75ba311c28e84327729586254eed

Aave Seatbelt report

https://github.com/bgd-labs/seatbelt-for-ghosts/blob/main/reports/Aave/0xEC568fffba86c094cf06b22134B23074DFE2252c/136.md

Technical analysis

From a technical perspective, we have verified that the proposal payload does the following changes on Aave v2 Ethereum, by interacting with the Aave Pool Configurator:

1. ENS:

• LTV: 50% -> 47%
• Liquidation Threshold: 60% -> 57%

2. MKR:

• LTV: 65% -> 62%
• Liquidation Threshold: 70% -> 67%

3. SNX:

• LTV: 49% -> 46%
• Liquidation Threshold: 65% -> 62%

4. CRV:

• LTV: 55% -> 52%
• Liquidation Threshold: 61% -> 58%

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.