# Risk Parameter Updates for AAVE V2 Ethereum
AI summary
This proposal from Gauntlet recommends freezing the CRV token on Aave V2 Ethereum and setting its Loan-to-Value (LTV) ratio to zero. This means CRV can no longer be used as collateral to borrow other assets, and existing CRV collateral will not be able to back new loans. The motivation stems from a large account borrowing approximately $63 million in USDST against $190 million in CRV, and concerns about decreasing CRV liquidity.
If passed, users will be unable to deposit CRV as new collateral or borrow against existing CRV collateral on Aave V2 Ethereum. This aims to reduce concentration risk for the protocol, but it could negatively affect the specific large borrower and other users who rely on CRV as collateral.
Voting results
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Risk Parameter Updates for AAVE V2 Ethereum
Author(s): Paul Lei, Watson Fu, Nick Del Zingaro, Walter Li, Jonathan Reem, Nick Cannon, Garrett Peterson, Sarah Chen, Dana Tung
Summary
Gauntlet recommends to freeze CRV and set CRV LTV -> 0 on Aave v2 Ethereum.
Motivation
Gauntlet has been looking into the risk profile of 0x7a16ff8270133f063aab6c9977183d9e72835428. This account borrows roughly $63m of USDST against $190m of CRV, as of 2023/06/13. We recommend to 1. freeze CRV collateral and 2. set Curve LTV to 0, to prevent the account from continuing to add CRV and increasing co…