# Chaos Labs RF and IR Updates - Aave V2 Ethereum
AI summary
This proposal from Chaos Labs suggests updating the Reserve Factors (RF) and Interest Rate (IR) curves for certain assets on Aave V2 Ethereum. These changes are part of an ongoing plan to gradually phase out the V2 markets. Specifically, it targets 'frozen' assets, meaning those that are no longer actively supported for new deposits or borrowing, to encourage users to migrate to newer versions of Aave.
If this proposal passes, the cost of borrowing and the portion of interest paid to the Aave treasury (Reserve Factor) for specific frozen assets on Aave V2 Ethereum will change. This aims to incentivize users to move their funds off V2, benefiting the overall Aave ecosystem by consolidating liquidity on newer, more secure versions. Users holding or borrowing these frozen assets on V2 will be directly affected by the adjusted rates.
Voting results
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Chaos Labs RF and IR Updates - Aave V2 Ethereum
title: "Chaos Labs RF and IR Updates - Aave V2 Ethereum" author: "Chaos Labs" discussions: "https://governance.aave.com/t/arfc-chaos-labs-rf-and-ir-updates-aave-v2-ethereum-2023-11-24/15661"
Simple Summary
A proposal to update Reserve Factors and IR curves for frozen assets on V2 Ethereum as part of the ongoing deprecation plan.
Motivation
In the past several months, the community is in the process of gradually winding down the V2 markets via a series of LT reductions and incremental increases in RFs. These efforts have been…