120-aave-v2-ethereum-risk-parameter-updates-REN-2022-17-11.md

Proposal 120. Aave v2 Ethereum - Risk Parameter Updates REN 2022-17-11

Voting link

https://app.aave.com/governance/proposal/?proposalId=120

Governance forum discussion

https://governance.aave.com/t/arc-risk-parameter-updates-for-aave-v2-eth-and-aave-arc-fireblocks-2022-11-17/10688

BGD analysis

Proposal types

🔧 📊 params-update

Context

This proposal is an update of risk parameters on Aave v2 Ethereum by Gauntlet, to reduce REN risk parameters, following the previous freezing on proposal 117.

Proposal creation

Transaction: https://etherscan.io/tx/0xbabb13c0e95905dd56fbfe1317ca5778dd9259af6c40f60588e3f06a52983e0f

- id: 120
- creator: 0x683a4f9915d6216f73d6df50151725036bd26c02
- executor: 0xee56e2b3d491590b5b31738cc34d5232f378a8d5
- targets: [0x311bb771e4f8952e6da169b425e7e92d6ac45756]
- values: [0]
- signatures: []
- calldatas: [0x7c4e560b000000000000000000000000408e41876cccdc0f92210600ef50372656052a38000000000000000000000000000000000000000000000000000000000000157c000000000000000000000000000000000000000000000000000000000000177000000000000000000000000000000000000000000000000000000000000029fe]
- withDelegatecalls: [false]
- startBlock: 16030143
- endBlock: 16049343
- strategy: 0xb7e383ef9b1e9189fc0f71fb30af8aa14377429e
- ipfsHash: 0x693959e01abc68712755e9e55809db89991b3762970eb8a97d84d01e17569ec5

Aave Seatbelt report

https://github.com/bgd-labs/seatbelt-for-ghosts/blob/main/reports/Aave/0xEC568fffba86c094cf06b22134B23074DFE2252c/120.md

Technical analysis

From a technical perspective, we have verified that the calldata submitted as payload of the proposal does the following:

1. Calls configureReserveAsCollateral() on the Aave Pool Configurator for REN, with the following changes:
   • LTV: 60% -> 55%
   • Liquidation Threshold: 65% -> 60%

BGD validations

✅ The code on the proposal payload corresponds to the proposal specification.

✅ Payload encoded via multiple targets and calldatas, no delegatecall

✅ BGD reviewed the payload before the proposal was submitted.

❓ The proposal includes a proper tests suite, checking all necessary post-conditions.

❌ BGD reviewed the procedure followed to submit the proposal.