204-aave-v3-ethereum-aave-parameters-update.md

Proposal 204. Aave v3 Ethereum - AAVE parameters update

Voting link

https://app.aave.com/governance/proposal/?proposalId=204

Governance forum discussion

https://governance.aave.com/t/arfc-align-aave-risk-parameters-on-aave-v3-ethereum-market-with-aave-v2/12656

BGD analysis

Proposal types

🔧 📊 params-update

Context

This proposal updates the risk parameters of the AAVE asset on Aave v3 Ethereum, to align them with the ones on Aave v2 Ethereum.

Proposal creation

Transaction: https://etherscan.io/tx/0x359567118d82e370f3f502d2e1fee5fa375bcbb3e5489e5e6380fcff30b2e60c

- id: 204
- creator: 0x329c54289ff5d6b7b7dae13592c6b1eda1543ed4
- executor: 0xee56e2b3d491590b5b31738cc34d5232f378a8d5
- targets: [0x8afb5a7ec013fe08c36efc9b3b48afed9d53d901]
- values: [0]
- signatures: [execute()]
- calldatas: [0x]
- withDelegatecalls: [true]
- startBlock: 17074091
- endBlock: 17093291
- strategy: 0xb7e383ef9b1e9189fc0f71fb30af8aa14377429e
- ipfsHash: 0x899a2100c271e4cae958d3af62e74717ed2662dbd8ac6ffdc17c4d126ba966ec

Aave Seatbelt report

https://github.com/bgd-labs/seatbelt-for-ghosts/blob/main/reports/Aave/0xEC568fffba86c094cf06b22134B23074DFE2252c/204.md

Technical analysis

The proposal payload effectively does the following changes on the AAVE asset on Aave v3 Ethereum:

• LTV: 60% -> 66%
• Liquidation Threshold: 70% -> 73%

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.