126-aave-v2-polygon-risk-parameter-updates.md

Proposal 126. Aave v2 Polygon - Risk Parameter Updates

Voting link

https://app.aave.com/governance/proposal/?proposalId=126

Governance forum discussion

https://governance.aave.com/t/arc-risk-parameter-recommendations-for-aave-v2-polygon-2022-11-25/10826

BGD analysis

Proposal types

🔧 📊 params-update

🔗 🌉 cross-chain execution

Context

This proposal is an update of risk parameters on Aave v2 Ethereum by Chaos Labs and Llama, applying more granular changes than the ones on proposal 124.

Proposal creation

Transaction: https://etherscan.io/tx/0x4a80c7b20bfd8fb541a8316a5d7f3d221eafbe2ee6620d23a41e31717efe4980

- id: 126
- creator: 0x55b16934c3661e1990939bc57322554d9b09f262
- executor: 0xee56e2b3d491590b5b31738cc34d5232f378a8d5
- targets: [0x158a6bc04f0828318821bae797f50b0a1299d45b]
- values: [0]
- signatures: [execute(address)]
- calldatas: [0x000000000000000000000000face5fafb0b61f77a67d239b3d1c94f08536db62]
- withDelegatecalls: [true]
- startBlock: 16068293
- endBlock: 16087493
- strategy: 0xb7e383ef9b1e9189fc0f71fb30af8aa14377429e
- ipfsHash: 0xdff78c5c3bbca49817d979701bb606c9779f290360755dd451d8e78c2f4444d0

Aave Seatbelt report

Ethereum report:

https://github.com/bgd-labs/seatbelt-for-ghosts/blob/main/reports/Aave/0xEC568fffba86c094cf06b22134B23074DFE2252c/126.md

Polygon report:

https://github.com/bgd-labs/seatbelt-for-ghosts/blob/main/reports/Aave/0xEC568fffba86c094cf06b22134B23074DFE2252c/126_fx_8_0.md

(There are some inconsistencies on the storage changes, due to inter-dependency with proposal 124, to be fixed soon)

Technical analysis

Like on every Aave cross-chain proposal, this one follows the procedure defined on https://github.com/bgd-labs/aave-v3-crosschain-listing-template. This means that after execution on Ethereum, the proposal payload will be queued on the Polygon side of the cross-chain infrastructure and, after the timelock there, will be open for execution.

From a technical perspective, we have verified that the proposal payload does the following changes on Aave v2 Polygon, by interacting with the Aave v2 Polygon Configurator:

• BAL

  • Freeze (already frozen by 124, so no extra effect)

• CRV

  • Unfreeze
  • Disable borrowing

• GHST

  • Freeze (already frozen by 124, so no extra effect)

• LINK

  • Unfreeze
  • Disable borrowing

• SUSHI

  • Freeze (already frozen by 124, so no extra effect)

• DPI (as described on the governance forum, but not as reflected in the table on the AIP)

  • Unfreeze (already frozen by 124, so no extra effect)
  • Disable borrowing (already disabled, so no extra effect)

BGD validations

✅ The code on the proposal payload corresponds to the proposal specification.

✅ Only one payload used via delegatecall

✅ BGD reviewed the payload before the proposal was submitted.

✅ The proposal includes a proper tests suite, checking all necessary post-conditions.

✅ BGD reviewed the procedure followed to submit the proposal.