Chaos Labs proposes lowering CRV liquidation threshold on Aave V3 Polygon
Chaos Labs has proposed to lower the liquidation threshold (LT) for CRV on Aave V3 Polygon at the Aave governance forum. Due to the significant decrease in market liquidity for CRV, this proposal aims to address the issue by lowering the liquidation threshold for CRV on Aave V3 Polygon. Its goal is to reduce CRV-related risk exposure and lower its borrowing capacity, thereby aligning it more accurately with existing market conditions and other deployed parameters. Chaos Labs proposes to reduce the LT by 15%, from 65% to 50%. According to Chaos Labs, the next step is to submit an ARFC for snapshot voting based on community feedback to obtain final approval. If consensus is reached, an Aave Improvement Proposal (AIP) will be submitted to implement the proposed updates.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ethereum’s Decentralization at Risk? New EIP 7805 Could be the Solution
Crypto liquidations reach $470M as Bitcoin retraces, altcoins surge
Mastercard and JP Morgan Team up to Enhance Cross Boarder Payments
SAND breaks through $0.8, with a 24-hour increase of 81.2%