[ARFC] Chaos Labs Risk Parameter Updates - LTV and LT Alignment

[ARFC] Chaos Labs Risk Parameter Updates - LTV and LT Alignment

[ARFC] Chaos Labs Risk Parameter Updates - LTV and LT Alignment

Sep 12, 2024

This is an archive of our post on Aave governance forum. Read the full thread here.

We support the proposed changes to the LT and LTV parameters across various deployments.

Regular housekeeping, such as the reassessment of underutilized assets’ caps and uniformization of parameters across chains, is desirable, improving user experience, protocol safety, and performance.

The @ChaosLabs team is doing an excellent job with their regular monitoring and proactive approach to optimizing the Aave protocol. Most important with these marginal changes is the impact on Value at Risk (VaR), which is a proxy for potential liquidations and adverse effects on the current user base. The data provided here suggest that the proposed changes will have a negligible impact on VaR.