V2 Ethereum LT Reductions
V2 Ethereum LT Reductions
Author
Chaos Labs - Eyal Ovadya
Creator
0x57ab7ee15cE5ECacB1aB84EE42D5A9d0d8112922
Simple Summary
A proposal to reduce Liquidation Thresholds on Aave V2 Ethereum.
Motivation
Following the v2 deprecation framework, Chaos Labs and Gauntlet advise implementing the subsequent parameter changes to the frozen assets on Aave v2 Ethereum and Polygon
As Liquidation Threshold reductions may lead to user accounts being eligible for liquidations upon their approval, we want to clarify the full implications to the community at each step. We will publicly communicate the planned amendments and list of affected accounts leading to the on-chain execution.
Specification
Chaos and Gauntlet align on following recommendations, choosing the higher value between Gauntlet’s aggressive and Chaos’s moderate approach for each asset:
Aave v2 Ethereum
| Asset | Current LT | Recommended LT |
|---|---|---|
| CRV | 18% | 14% |
| ENS | 24% | 0.05% |
| LINK | 74% | 72% |
| MKR | 18% | 14% |
| UNI | 20% | 14% |
| ZRX | 12% | 8% |
| Value liquidated | Accounts liquidated | |
|---|---|---|
| Total | $67,480 | 47 |
References
- Implementation: AaveV2Ethereum
- Tests: AaveV2Ethereum
- [Snapshot](No snapshot for Direct-to-AIP)
- Discussion
Copyright
Copyright and related rights waived via CC0.