Chaos Labs - Polygon V3 CRV Risk Parameters Update (bgd-labs#198)

diffs/preAaveV3PolCRVRiskParams_20230702Change_postAaveV3PolCRVRiskParams_20230702Change.md

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+## Reserve changes
+
+### Reserves altered
+
+#### CRV ([0x172370d5Cd63279eFa6d502DAB29171933a610AF](https://polygonscan.com/address/0x172370d5Cd63279eFa6d502DAB29171933a610AF))
+
+| description | value before | value after |
+| --- | --- | --- |
+| ltv | 75 % | 70 % |
+| liquidationThreshold | 80 % | 75 % |
+
+
+## Raw diff
+
+```json
+{
+  "reserves": {
+    "0x172370d5Cd63279eFa6d502DAB29171933a610AF": {
+      "liquidationThreshold": {
+        "from": 8000,
+        "to": 7500
+      },
+      "ltv": {
+        "from": 7500,
+        "to": 7000
+      }
+    }
+  }
+}
+```

src/AaveV3PolCRVRiskParams_20230702/AaveV3PolCRVRiskParams_20230702.sol

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+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.16;
+
+import {AaveV3PayloadPolygon, IEngine, EngineFlags} from 'aave-helpers/v3-config-engine/AaveV3PayloadPolygon.sol';
+import {AaveV3PolygonAssets} from 'aave-address-book/AaveV3Polygon.sol';
+
+/**
+ * @title Update Risk Parameters for CRV on Aave V3 Polygon
+ * @author @ChaosLabsInc
+ * - Snapshot: https://snapshot.org/#/aave.eth/proposal/0x0b04533e8d9ab0f259bd19874ef5b66008a53f55313116cc054e0aa705fa01b6
+ * - Discussion: https://governance.aave.com/t/arfc-chaos-labs-risk-parameter-update-crv-aave-v3-polygon-2023-06-20/13767
+ */
+contract AaveV3PolCRVRiskParams_20230702 is AaveV3PayloadPolygon {
+  function collateralsUpdates() public pure override returns (IEngine.CollateralUpdate[] memory) {
+    IEngine.CollateralUpdate[] memory collateralUpdate = new IEngine.CollateralUpdate[](1);
+
+    collateralUpdate[0] = IEngine.CollateralUpdate({
+      asset: AaveV3PolygonAssets.CRV_UNDERLYING,
+      ltv: 70_00,
+      liqThreshold: 75_00,
+      liqBonus: EngineFlags.KEEP_CURRENT,
+      debtCeiling: EngineFlags.KEEP_CURRENT,
+      liqProtocolFee: EngineFlags.KEEP_CURRENT,
+      eModeCategory: EngineFlags.KEEP_CURRENT
+    });
+
+    return collateralUpdate;
+  }
+}

src/AaveV3PolCRVRiskParams_20230702/AaveV3PolCRVRiskParams_20230702_Test.t.sol

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+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.16;
+
+import {AaveV3Polygon, AaveV3PolygonAssets} from 'aave-address-book/AaveV3Polygon.sol';
+import {AaveV3PolCRVRiskParams_20230702} from './AaveV3PolCRVRiskParams_20230702.sol';
+import {GovHelpers} from 'aave-helpers/GovHelpers.sol';
+import {AaveGovernanceV2} from 'aave-address-book/AaveGovernanceV2.sol';
+import {ProtocolV3TestBase, ReserveConfig} from 'aave-helpers/ProtocolV3TestBase.sol';
+
+contract AaveV3PolCRVRiskParams_20230702_Test is ProtocolV3TestBase {
+  uint256 public constant CRV_UNDERLYING_LIQ_THRESHOLD = 75_00;
+  uint256 public constant CRV_UNDERLYING_LTV = 70_00;
+
+  function setUp() public {
+    vm.createSelectFork(vm.rpcUrl('polygon'), 44593763);
+  }
+
+  function testPayload() public {
+    AaveV3PolCRVRiskParams_20230702 proposalPayload = new AaveV3PolCRVRiskParams_20230702();
+
+    // 1. create snapshot before payload execution
+    ReserveConfig[] memory allConfigsBefore = createConfigurationSnapshot(
+      'preAaveV3PolCRVRiskParams_20230702Change',
+      AaveV3Polygon.POOL
+    );
+
+    // 2. execute payload
+    GovHelpers.executePayload(
+      vm,
+      address(proposalPayload),
+      AaveGovernanceV2.POLYGON_BRIDGE_EXECUTOR
+    );
+
+    // 3. create snapshot after payload execution
+    ReserveConfig[] memory allConfigsAfter = createConfigurationSnapshot(
+      'postAaveV3PolCRVRiskParams_20230702Change',
+      AaveV3Polygon.POOL
+    );
+
+    // 4. Verify payload:
+    ReserveConfig memory CRV_UNDERLYING_CONFIG = _findReserveConfig(
+      allConfigsBefore,
+      AaveV3PolygonAssets.CRV_UNDERLYING
+    );
+
+    CRV_UNDERLYING_CONFIG.liquidationThreshold = CRV_UNDERLYING_LIQ_THRESHOLD;
+    CRV_UNDERLYING_CONFIG.ltv = CRV_UNDERLYING_LTV;
+
+    _validateReserveConfig(CRV_UNDERLYING_CONFIG, allConfigsAfter);
+
+    // 5. compare snapshots
+    diffReports(
+      'preAaveV3PolCRVRiskParams_20230702Change',
+      'postAaveV3PolCRVRiskParams_20230702Change'
+    );
+
+    _noReservesConfigsChangesApartFrom(
+      allConfigsBefore,
+      allConfigsAfter,
+      AaveV3PolygonAssets.CRV_UNDERLYING
+    );
+  }
+}

src/AaveV3PolCRVRiskParams_20230702/CHAOS-LABS-RISK-PARAMETERS-UPDATE-CRV-AAVE-V3-POLYGON.md

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+---
+title: Chaos Labs Risk Parameter Update - CRV Aave V3 Polygon
+author: Chaos Labs (@ori-chaoslabs, @yonikesel)
+discussions: https://governance.aave.com/t/arfc-chaos-labs-risk-parameter-update-crv-aave-v3-polygon-2023-06-20/13767
+---
+
+## Simple Summary
+
+A proposal to reduce Liquidation Threshold (LT) and Loan-To-Value (LTV) for CRV on Aave V3 Polygon.
+
+## Motivation
+
+As the market liquidity of CRV has seen a substantial decline following the initial Polygon V3 listing, this proposal seeks to address this by decreasing the liquidation threshold (LT) and loan-to-value ratio (LTV). The objective is to mitigate the risk exposure associated with CRV and diminish its borrowing power, thereby aligning it more accurately with the existing market climate.
+
+As Liquidation Threshold reductions may lead to user accounts being eligible for liquidations upon their approval, we want to clarify the full implications to the community at each step. We suggest reaching the desired settings with a series of incremental decreases to minimize this impact. This proposal recommends a slightly more aggressive reduction than the one discussed in the [Risk-Off Framework](https://snapshot.org/#/aave.eth/proposal/bafkreigdmcfmwvnxfolpds4xkdicgrszgmknig7pz2r2t37tltupdpyfu4) previously approved by the community, reducing the LT by 5%.
+
+Chaos Labs will publicly communicate the planned amendments and list of affected accounts leading to the on-chain execution.
+
+In the graph below, we share data to quantify and visualize the effect of the recommended reductions on protocol users. At the time of writing this post, zero (0) accounts will be affected by the proposed decrease.
+
+## Specification
+
+| Asset | Parameter | Current Value | Recommendation |
+| ----- | --------- | ------------- | -------------- |
+| CRV   | LT        | 80            | 75             |
+| CRV   | LTV       | 75            | 70             |
+
+## Copyright
+
+Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).

src/AaveV3PolCRVRiskParams_20230702/DeployAaveV3PolCRVRiskParams_20230702.s.sol

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+pragma solidity ^0.8.16;
+
+import {GovHelpers} from 'aave-helpers/GovHelpers.sol';
+import {PolygonScript, EthereumScript} from 'aave-helpers/ScriptUtils.sol';
+import {AaveV3PolCRVRiskParams_20230702} from './AaveV3PolCRVRiskParams_20230702.sol';
+
+contract CreateProposal is EthereumScript {
+  function run() external broadcast {
+    GovHelpers.Payload[] memory payloads = new GovHelpers.Payload[](1);
+    payloads[0] = GovHelpers.buildPolygon(address(0));
+    GovHelpers.createProposal(
+      payloads,
+      GovHelpers.ipfsHashFile(
+        vm,
+        'src/AaveV3PolCRVRiskParams_20230702/CHAOS-LABS-RISK-PARAMETERS-UPDATE-CRV-AAVE-V3-POLYGON.md'
+      )
+    );
+  }
+}
+
+contract DeployPayloadPolygon is PolygonScript {
+  function run() external broadcast {
+    new AaveV3PolCRVRiskParams_20230702();
+  }
+}