233-aave-v3-multichain-emode-params-update.md

Proposal 233. Aave v3 Polygon, Arbitrum, Optimism - e-mode risk params updates

Voting link

https://app.aave.com/governance/proposal/?proposalId=233

Governance forum discussions

https://governance.aave.com/t/gauntlet-aave-v3-e-mode-methodology/12278

BGD analysis

Proposal types

🔧 📊 params-update

Context

This proposal updates risk parameters of the USD-correlated e-mode category on Aave v3 Polygon, Arbitrum and Optimism.

IMPORTANT. This proposal causes user liquidations, but this has been extensively disclosed and acknowledged by the proposer (Gauntlet) for the community

Proposal creation

Transaction: https://etherscan.io/tx/0xf94ee0fdde6965c42dcb3e07e66db8b11deffecbf1cc93310b6ffb970f17fb28

- id: 233
- creator: 0x683a4f9915d6216f73d6df50151725036bd26c02
- executor: 0xee56e2b3d491590b5b31738cc34d5232f378a8d5
- targets: [0xd1b3e25fd7c8ae7caddc6f71b461b79cd4ddcfa3,0x158a6bc04f0828318821bae797f50b0a1299d45b,0x5f5c02875a8e9b5a26fbd09040abcfdeb2aa6711]
- values: [0,0,0]
- signatures: [execute(address),execute(address),execute(address)]
- calldatas: [0x000000000000000000000000142dcaec322aaa25141b2597bf348487adbd596d,0x00000000000000000000000024bdacf6bbebaf567123da16cdb79a266597e92b,0x000000000000000000000000f22c8255ea615b3da6ca5cf5aecc8956bff07aa8]
- withDelegatecalls: [true,true,true]
- startBlock: 17325938
- endBlock: 17345138
- strategy: 0xb7e383ef9b1e9189fc0f71fb30af8aa14377429e
- ipfsHash: 0x597779e8a7564df81730fbb0522ee52147427851c335df92bc297d332de34dc2

Aave Seatbelt reports

Ethereum

https://github.com/bgd-labs/seatbelt-for-ghosts/blob/main/reports/Aave/0xEC568fffba86c094cf06b22134B23074DFE2252c/233.md

Polygon

https://github.com/bgd-labs/seatbelt-for-ghosts/blob/main/reports/Aave/0xEC568fffba86c094cf06b22134B23074DFE2252c/233_fx_43_0.md

Optimisim

https://github.com/bgd-labs/seatbelt-for-ghosts/blob/main/reports/Aave/0xEC568fffba86c094cf06b22134B23074DFE2252c/233_optimism_18_0.md

Arbitrum

Aave Seatbelt doesn't support Arbitrum yet.

Technical analysis

We have verified the proposal uses correctly the Aave cross-chain governance system in the parts communicating with Polygon, Arbitrum and Optimism.

Regarding each payload, the changes applied are the following:

Polygon

• USD-correlated e-mode (eModeCategory 1):
  • LTV: 97% -> 93%
  • Liquidation Threshold: 97.5% -> 95%

Arbitrum

• USD-correlated e-mode (eModeCategory 1):
  • LTV: 97% -> 93%
  • Liquidation Threshold: 97.5% -> 95%

Optimism

• USD-correlated e-mode (eModeCategory 1):
  • LTV: 97% -> 93%
  • Liquidation Threshold: 97.5% -> 95%

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.