v3-2-aave-v2-v3-avalanche-risk-parameters-update.md

V3. Proposal 2. Aave v2/v3 Avalanche - Risk parameters update

Voting link

https://vote.onaave.com/proposal/?proposalId=2

Governance forum discussion

https://governance.aave.com/t/arfc-chaos-labs-risk-parameter-updates-wbtc-e-on-v2-and-v3-avalanche/15824

BGD analysis

Proposal types

🔧 📊 params-update

Context

This proposal freezes WBTC.e on both Aave v2 and v3 Avalanche, in order to incentize the migration to BTC.b.

Proposal creation

Transaction: https://etherscan.io/tx/0x3b67066fe02ab1a19c13496de00eb016a30eed6466e8df8a5752dcd120b027bb

- proposalId: 2
- creator: 0x57ab7ee15ce5ecacb1ab84ee42d5a9d0d8112922
- accessLevel: 1
- ipfsHash: 0x7daf1c990ca47b29e121845efc40ac7e4384b70536f2dee46dd06d4e03920d4c

createProposal() parameters

{
  "payloads": [
    {
      "chain": "43114",
      "accessLevel": 1,
      "payloadsController": "0x1140cb7cafacc745771c2ea31e7b5c653c5d0b80",
      "payloadId": "11"
    }
  ],
  "votingPortal": "0x9b24c168d6a76b5459b1d47071a54962a4df36c3",
  "ipfsHash": "0x7daf1c990ca47b29e121845efc40ac7e4384b70536f2dee46dd06d4e03920d4c"
}

Aave Seatbelt report

Proposal report

https://github.com/bgd-labs/seatbelt-gov-v3/blob/main/reports/proposals/2.md

Payloads report

https://github.com/bgd-labs/seatbelt-gov-v3/blob/main/reports/payloads/43114/0x1140CB7CAfAcC745771C2Ea31e7B5C653c5d0B80/11.md

Technical analysis

The proposal payload has 2 actions, one for v2 Avalanche and the other to v3. We have verified they do the following:

v2 Avalanche

• It freezes the WBTC.e asset.
• LTV: 60% -> 0%.
• Liquidation threshold: 75% -> 70%

v3 Avalanche

• It freezes the WBTC.e asset.
• LTV: 70% -> 0%.
• Liquidation threshold: 75% -> 70%

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.