# Risk Parameter Updates for Aave v2 Polygon
AI summary
This proposal suggests updating risk parameters for Aave v2 on the Polygon network. It aims to reduce risk by freezing certain assets (GHST, BAL, SUSHI) and disabling borrowing for others (LINK, DPI, CRV). Freezing an asset means users can no longer deposit or borrow it, while disabling borrowing means existing borrowers can repay but no new loans can be taken out. These changes are a response to recent market volatility and liquidity concerns.
If passed, users will no longer be able to deposit or borrow GHST, BAL, and SUSHI on Aave v2 Polygon, and new borrowing of LINK, DPI, and CRV will be prevented. This reduces the overall risk exposure for the Aave protocol and its users on Polygon, but it limits the utility of these specific assets for lending and borrowing within Aave v2. No specific dollar amounts are mentioned as this proposal focuses on asset availability rather than direct treasury allocation.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Risk Parameter Updates for Aave v2 Polygon
RISK-PARAMS-UPDATE-AAVE-V2-POLYGON
Author(s): Llamaxyz & Chaos Labs (defijesus, Matthew Graham, Omer Arie Goldberg, Yonatan Haimowitz)
Simple Summary
In response to recent market events and the resulting discussion on the Aave governance forum regarding the Aave communities risk appetite, Llama and Chaos Labs proposes to make a series of parameter changes to the Polygon Aave v2 Liquidity Pool.
Abstract
We specifically recommend freezi…