v3-4-aave-v2-ethereum-risk-parameters-update.md

V3. Proposal 4. Aave v2 Ethereum - Risk parameters update

Voting link

https://vote.onaave.com/proposal/?proposalId=4

Governance forum discussion

https://governance.aave.com/t/arfc-v2-ethereum-lt-reductions-01-02-2024/16030#aave-v2-ethereum-4

BGD analysis

Proposal types

🔧 📊 params-update

Context

This proposal updates multiple risk parameters on Aave v2 Ethereum.

Proposal creation

Transaction: https://etherscan.io/tx/0xcecde0d40cdc23c66780390c72a49cc793f17dd357bc2f046e6915dfde3de132

- proposalId: 4
- creator: 0x57ab7ee15ce5ecacb1ab84ee42d5a9d0d8112922
- accessLevel: 1
- ipfsHash: 0x6f9c36de2cb41a1fadfe2f679c47eba6ac4c735de8ee12d3fa5b0d2b6fc3e29e

createProposal() parameters

{
  "payloads": [
    {
      "chain": "1",
      "accessLevel": 1,
      "payloadsController": "0xdabad81af85554e9ae636395611c58f7ec1aaec5",
      "payloadId": "45"
    }
  ],
  "votingPortal": "0x9b24c168d6a76b5459b1d47071a54962a4df36c3",
  "ipfsHash": "0x6f9c36de2cb41a1fadfe2f679c47eba6ac4c735de8ee12d3fa5b0d2b6fc3e29e"
}

Aave Seatbelt report

Proposal report

https://github.com/bgd-labs/seatbelt-gov-v3/blob/main/reports/proposals/4.md

Payloads report

https://github.com/bgd-labs/seatbelt-gov-v3/blob/main/reports/payloads/1/0xdAbad81aF85554E9ae636395611C58F7eC1aAEc5/45.md

Technical analysis

We have verified the proposal payload updates the following parameters on Aave v2 Ethereum, via its Pool Configurator contract:

UNI

• Liquidation Threshold: 40% -> 20%

LINK:

• Liquidation Threshold: 75% -> 74%

MKR

• Liquidation Threshold: 26% -> 18%

ENS

• Liquidation Threshold: 30% -> 24%

CRV:

• Liquidation Threshold: 25% -> 18%

ZRX

• Liquidation Threshold: 18% -> 12%

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.