v3-18-aave-v3-polygon-risk-parameters-update.md

V3. Proposal 18. Aave v3 Polygon - Risk parameters update

Voting link

https://vote.onaave.com/proposal/?proposalId=18

Governance forum discussion

https://governance.aave.com/t/arfc-recommendation-to-freeze-and-set-ltv-to-0-on-low-cap-aave-v3-polygon-collateral-assets/16311

BGD analysis

Proposal types

🔧 📊 params-update

🧊 freeze-asset

Context

This proposal updates risk parameters on Aave v3 Polygon for DPI, BAL, CRV and SUSHI, by freezing those assets and setting their LTV to 0.

Proposal creation

Transaction: https://etherscan.io/tx/0x1594a4417e3251d27e90841b1c82637e91eae49f733ad50a1138156ad21a6735

- proposalId: 18
- creator: 0x683a4f9915d6216f73d6df50151725036bd26c02
- accessLevel: 1
- ipfsHash: 0xaa892464bae2973847f53df2175ab6c1c3240656eef5d72fa76210f50bb56d1d

createProposal() parameters

{
  "payloads": [
    {
      "chain": "137",
      "accessLevel": 1,
      "payloadsController": "0x401b5d0294e23637c18fcc38b1bca814cda2637c",
      "payloadId": "33"
    }
  ],
  "votingPortal": "0x9b24c168d6a76b5459b1d47071a54962a4df36c3",
  "ipfsHash": "0xaa892464bae2973847f53df2175ab6c1c3240656eef5d72fa76210f50bb56d1d"
}

Aave Seatbelt report

Proposal report

https://github.com/bgd-labs/seatbelt-gov-v3/blob/main/reports/proposals/18.md

Payloads report

Polygon

https://github.com/bgd-labs/seatbelt-gov-v3/blob/main/reports/payloads/137/0x401B5D0294E23637c18fcc38b1Bca814CDa2637C/33.md

https://github.com/bgd-labs/seatbelt-gov-v3/blob/main/reports/payloads/137/0x401B5D0294E23637c18fcc38b1Bca814CDa2637C/33_forge.md

Technical analysis

We have verified the proposal payload does the following changes on Aave v3 Polygon:

SUSHI

• Freezes the asset
• LTV: 20% -> 0%

CRV

• Freezes the asset
• LTV: 35% -> 0%

DPI

• Freezes the asset
• LTV: 20% -> 0%

BAL

• Freezes the asset
• LTV: 20% -> 0%

The proposal payload is consistent with the description in 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.