An SVG of an eye

Proposal overview

Aave V3 Interest Rate Curve Changes (4/27)

Executed

ExecutedΒ onΒ 

May 21, 2023

Summary

A proposal to make parameter changes on the Ethereum, Polygon, Avalanche, Arbitrum, and Optimism Aave V3 markets. For more details, see the full forum post here.

Motivation

Given the significant shifts in crypto markets, Gauntlet’s platform has evaluated all assets on Aave V3’s active markets and has identified opportunities to adjust parameters for certain assets for the benefit of the protocol. Our methodology makes data-informed decisions around setting borrower and supplier interest rates when market conditions require the protocol to reduce risk or when strategic opportunities present themselves to increase protocol revenue without materially impacting risk. This analysis further finetunes the interest rate curves of Aave V3 across the Ethereum, Polygon, Avalanche, Arbitrum, and Optimism markets.

Specification

Aave V3 Ethereum

CRVUSDCUSDTWBTC
Optimal0.70.90.9 β†’ 0.80.45
Variable Base0.030.00.00.0
Variable Slope 10.140.04 β†’ 0.0350.040.07 β†’ 0.04
Variable Slope 23.00.60.72 β†’ 0.753.0
Stable Base Offset0.030.010.010.02
Stable Slope 10.080.0050.040.07
Stable Slope 23.00.60.723.0
Reserve Factor0.2 β†’ 0.350.10.10.2

Aave V3 Polygon

CRVDPIEURSUSDCWBTC
Optimal0.70.450.80.90.45
Variable Base0.030.00.00.00.0
Variable Slope 10.140.07 β†’ 0.10.04 β†’ 0.060.04 β†’ 0.0350.07 β†’ 0.04
Variable Slope 23.03.00.750.63.0
Stable Base Offset0.030.020.010.010.02
Stable Slope 10.080.00.0050.0050.0
Stable Slope 23.00.00.750.60.0
Reserve Factor0.2 β†’ 0.350.350.10.10.2

Aave V3 Avalanche

USDCWBTC
Optimal0.90.45
Variable Base0.00.0
Variable Slope 10.04 β†’ 0.0350.07 β†’ 0.04
Variable Slope 20.63.0
Stable Base Offset0.010.02
Stable Slope 10.0050.0
Stable Slope 20.60.0
Reserve Factor0.10.2

Aave V3 Arbitrum

EURSUSDCWBTC
Optimal0.80.90.45
Variable Base0.00.00.0
Variable Slope 10.04 β†’ 0.060.04 β†’ 0.0350.07 β†’ 0.04
Variable Slope 20.750.63.0
Stable Base Offset0.010.010.02
Stable Slope 10.0050.0050.0
Stable Slope 20.750.60.0
Reserve Factor0.10.10.2

Aave V3 Optimism

USDCWBTC
Optimal0.90.45
Variable Base0.00.0
Variable Slope 10.04 β†’ 0.0350.07 β†’ 0.04
Variable Slope 20.63.0
Stable Base Offset0.010.02
Stable Slope 10.0050.0
Stable Slope 20.60.0
Reserve Factor0.10.2

Implementation

The proposal implements changes on Aave V3 Ethereum, Polygon, Arbitrum, and Optimism using the following pre-deployed payloads:

Changes on Avalanche can be implemented using the pre-deployed steward located at 0x24bdacf6bbebaf567123da16cdb79a266597e92b

Copyright

Copyright and related rights waived via CC0.

By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos. This message is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, nor does it constitute an offer to provide investment advisory or other services by Gauntlet Networks Inc. No reference to any specific security constitutes a recommendation to buy, sell or hold that security or any other security. Nothing in this report shall be considered a solicitation or offer to buy or sell any security, future, option or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this report constitutes investment advice or offers any opinion with respect to the suitability of any security, and the views expressed in this report should not be taken as advice to buy, sell or hold any security. The information in this report should not be relied upon for the purpose of investing. In preparing the information contained in this report, we have not taken into account the investment needs, objectives and financial circumstances of any particular investor. This information has no regard to the specific investment objectives, financial situation and particular needs of any specific recipient of this information and investments discussed may not be suitable for all investors. Any views expressed in this report by us were prepared based upon the information available to us at the time such views were written. Changed or additional information could cause such views to change. All information is subject to possible correction. Information may quickly become unreliable for various reasons, including changes in market conditions or economic circumstances.

Your voting info

Voting results

YAE

520,827

AAVE

100.00%

NAY

0

AAVE

0%

Votes

State
Executed

ExecutedΒ onΒ 

May 21, 2023
Quorum
Reached
Current votes

Required

520.82K

320.00K

Differential
Reached
Current differential

Required

520.82K

80,000.00

Total voting power

16,000,000

Proposal details

Created

Block

16 May 2023, 02:59 UTC +00:00

17269470

Started

Block

17 May 2023, 03:22 UTC +00:00

17276670

Ended

Block

19 May 2023, 19:22 UTC +00:00

17295870

Executed

21 May 2023, 05:04 UTC +00:00

Author

Paul Lei, Nick Egan, Watson Fu, Nick Del Zingaro, Jonathan Reem, Nick Cannon, Nathan Lord, Sarah Chen