296-aave-v3-ethereum-lusd-risk-params-update.md

Proposal 296. Aave v3 Ethereum - LUSD risk parameters update

Voting link

https://app.aave.com/governance/proposal/?proposalId=296

Governance forum discussion

https://governance.aave.com/t/arfc-activate-lusd-as-collateral-on-aave-v3-eth-pool/14199

BGD analysis

Proposal types

🔧 📊 params-update

Context

This proposal enables LUSD as collateral on Aave v3 Ethereum.

Proposal creation

Transaction: https://etherscan.io/tx/0x204ec620c3c014ee22dd8883773079054f89e1f78bb2823fcf23440f8297caa3

- id: 296
- creator: 0x329c54289ff5d6b7b7dae13592c6b1eda1543ed4
- executor: 0xee56e2b3d491590b5b31738cc34d5232f378a8d5
- targets: [0x96b3fe1bcc88903bcdb032b09fbb16ee0f908b43]
- values: [0]
- signatures: [execute()]
- calldatas: [0x]
- withDelegatecalls: [true]
- startBlock: 17899467
- endBlock: 17918667
- strategy: 0xb7e383ef9b1e9189fc0f71fb30af8aa14377429e
- ipfsHash: 0x0d2cc4c8c0d7a78fb60b11348eaec91b7b005df1ee36f1fa45b8ace6208f8a41

Aave Seatbelt report

Ethereum

https://github.com/bgd-labs/seatbelt-for-ghosts/blob/main/reports/Aave/0xEC568fffba86c094cf06b22134B23074DFE2252c/296.md

Technical analysis

We have verified the proposal payload properly activates LUSD as collateral (non-isolated) with the following parameters:

• LTV: 77%
• Liquidation Threshold: 80%
• Liquidation Bonus: 4.5%
• Liquidation Protocol fee: 10%

The proposal is consistent with the discussions on the Aave governance forum.

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.