Aave Proposes Measures to Mitigate Risks in Scroll Ecosystem
- Aave has proposed raising the reserve factor for all assets to 90% as a defensive measure.
- The proposal aims to cut borrowing caps for all assets and lower supply caps to existing levels.
- Currently, Aave holds approximately $6 million in total value locked (TVL) on Scroll, one of its smallest liquidity pools.
- The initiative was submitted by the Aave Chan Initiative (ACI) on September 11, amid governance instability at Scroll.
- Scroll’s DAO has paused new proposals while redesigning its governance model following leadership changes.
Aave’s proposal reflects a proactive approach to safeguard its users and liquidity pools within the Layer2 network of Scroll, which is currently facing governance challenges. The measures are designed to contain risks associated with Scroll-based assets and enhance protocol safety.
With Aave’s TVL on Scroll at $6 million, these adjustments aim to ensure swift responses to potential governance disruptions in the ecosystem.(Source)
