Aave, the largest decentralized loan protocol, has proposed to reduce the exposure to governance risks within the Ethereum Layer-2 network, Scroll’s ecosystem.
The initiativeSubmitted on 11 September by the Aave Chan Initiative (ACI), comes in the middle of the increasing instability in the decentralized management model of Scroll.
The proposal outlines various defensive measures to protect the users and liquidity pools of Aave. These include increasing the reserve factor for all listed assets up to 90%, lowering the food caps to existing levels and reducing loan caps for all loanable assets.
According to ACI, these steps will help to contain exposure to scroll -based assets, to strengthen the safety of the protocol by conservative risk parameters and ensuring that Aave can respond quickly if the disruptions of the board escalate.
ACI pointed out that the implementation of the proposal by the direct to AIP process will continue, which makes faster deployment of urgent changes possible.
Facts From Defillama shows that Aave has currently locked around $ 6 million in total value (TVL) on Scroll, making it the chain with one of the smallest liquidity pools.
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Scroll’s DAO problems
The urgency of Aave’s proposal stems from internal unrest at Scroll’s Decentralized Autonomous Organization (DAO). Role announced Earlier in the day that the new proposals within his DAO had stopped as part of a plan to re -design the board.
Scroll said that the decision would make it possible for experiments with governance models to emphasize efficiency, effectiveness and coordination. The team also emphasized that the break aims to protect stability in the short term, while laiding the foundation for sustainable growth.
In the meantime, Scroll emphasized that the already approved proposals will continue. Fresh entries, however, will be paused until the new structure has been introduced.
This step comes within the DAO after leadership turbulence. Olimpio, a scroll representative, confirmed That the lead of the DAO, known as Eugene, resigned earlier in the week.
According to Olimpio, this departure has left the community with uncertainty, with various proposals now stuck. These include a Treasury Management initiative, the formation of an administrative council and a test of a DAO -Timelock mechanism.
