# Risk Parameter Updates for Aave Arc (Fireblocks) 2022-05-26
AI summary
This proposal, authored by Gauntlet, suggests adjusting two risk parameters—Loan-to-Value (LTV) and Liquidation Threshold—for the USDC asset within Aave Arc (Fireblocks). These changes aim to align with the Aave community's 'Moderate risk level' and are the first parameter updates for the Aave Arc market. The adjustments are based on Gauntlet's simulations, which indicate that increasing the capital efficiency of USDC collateral does not significantly raise the risk of insolvencies.
If passed, the changes will make it possible for users to borrow more against their USDC collateral on Aave Arc, potentially increasing borrowing activity and capital efficiency for those using the platform. The proposal states that this will not meaningfully increase the risk of insolvencies for the protocol.
Voting results
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Risk Parameter Updates for Aave Arc (Fireblocks) 2022-05-26
AIP-80
Author(s): Paul Lei, Jonathan Reem, Nick Cannon, Watson Fu, Tony Salvatore, Sarah Chen
Simple Summary
This AIP proposes adjusting two (2) total risk parameters, including LTV and Liquidation Threshold, across one (1) Aave Arc (Fireblocks) asset.
Abstract
This proposal is a batch update of risk parameters to align with the Moderate risk level chosen by the Aave community.
These parameter updates represent Gauntlet's fir…