An archive of our post on Aave Governance forum, in the context of our scope of Risk service provider.

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

Having initially noted concerns about the pricing approach for this asset and following discussions with Chaos Labs, we agree that using a SPY/USD feed currently represents the best solution. We recognize that a properly implemented PoR could help mitigate exposure to bad debt in cases of insolvency. The natural discount between CSPX and SPY and the proposed LTV and LT values provides a significant buffer that adequately addresses potential risks.