Adjust Aave Polygon V3 Risk Parameters
Adjust Aave Polygon V3 Risk Parameters
Author
ACI
Creator
0x57ab7ee15cE5ECacB1aB84EE42D5A9d0d8112922
Simple Summary
This proposal addendum seeks governance approval for adjustment of the AIP-254 to reintroduce LTV for non-bridged stablecoins in Aave Polygon V3.
Motivation
Based on service provider and community feedback, this proposal aims to adjust AIP-254 to reintroduce LTV for non-bridged stablecoins in Aave Polygon V3, as they carry no rehypothecation risk. It also reduces stablecoin E-mode LT in Aave Polygon V3 due to insufficient stablecoin/stablecoin trading volume to justify the current risk level.
USDT is scheduled to migrate to the USDT0 standard soon, as recently implemented on networks like Arbitrum. To promote stablecoin diversity and taking an optimistic view on the reduction of bridge risk for this asset, this proposal aims to restore an LTV for USDT.
Specification
Aave Polygon V3 stablecoins suggested risk parameters
| Deployment | Asset | Current LTV | Proposed LTV |
|---|---|---|---|
| Polygon V3 | USDT | 0% | 70% |
| Polygon V3 | USDC | 0% | 70% |
Aave Polygon Stablecoin E-mode
- Make all stablecoins non-borrowable in the stablecoin E-mode category
| Current LTV | Proposed LTV | Current LT | Proposed LT |
|---|---|---|---|
| 93% | 91.25% | 95% | 94.25% |
References
- Implementation: AaveV3Polygon
- Tests: AaveV3Polygon
- Snapshot: Direct-to-AIP
- Discussion
Copyright
Copyright and related rights waived via CC0.