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The Aave community proposes to activate OP as a borrowable asset in the Aave V3 Optimism pool

2023-10-08 11:49
Odaily News The Aave community is conducting on-chain voting on the OP Risk Parameter Update proposal, which will end on October 9. The AIP proposes to activate OP as a borrowable asset in the Aave V3 Optimism pool, aiming to adapt to the maturity of L2 and attract more LPs and borrowers, thereby creating new revenue for the protocol. According to the proposed new risk parameters, the borrowing limit is 500,000 coins, the loan value is 30%, the liquidation threshold is 40%, and the reserve factor is 20%. While the proposed reforms are less conservative, they still maintain tight supply and borrowing caps and a conservative interest rate strategy, the proposal said. This ensures that the DAO can promote growth and new opportunities while remaining risk-averse.