# Risk Parameter Updates 2022-02-24
AI summary
This proposal, authored by Gauntlet, suggests adjusting three risk parameters for two assets on Aave V2: Loan-to-Value (LTV), Liquidation Threshold, and Liquidation Bonus. These changes aim to align with the community's 'Moderate risk level' and are part of Gauntlet's ongoing recommendations to optimize the protocol's risk profile. The adjustments are based on simulations that consider factors like asset volatility, liquidity, and trading volume.
If passed, these changes will subtly alter the borrowing and lending conditions for users interacting with the affected assets on Aave V2, potentially increasing capital efficiency for some while maintaining overall protocol risk. Users of these specific assets might find it slightly easier or harder to borrow against their collateral, or face different liquidation conditions.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Risk Parameter Updates 2022-02-24
AIP-63
Author(s): Paul Lei, Jonathan Reem, Nick Cannon, Watson Fu, Yorke Rhodes
Simple Summary
A proposal to adjust three (3) total risk parameters including LTV, Liquidation Threshold, and Liquidation Bonus across two (2) Aave V2 assets.
Abstract
This proposal is a batch update of risk parameters to align with the the Moderate risk level chosen by the Aave community. These parameter updates are a continuation of Gauntlet's regular parameter recommenda…