LlamaRisk has submitted a governance proposal to update the snapshotRatio parameter across Aave V3 deployments, addressing a growing spread between the CAPO upper bound and actual exchange rates for yield-bearing collateral assets. The drift, caused by high maxYearlyRatioGrowthPercent settings and outdated snapshots, means an inflation attack could cause collateral to be priced materially above true value, generating bad debt in the protocol.
Armada's crypto-repo desk references Aave V3 pricing and risk parameters as benchmarks when calibrating its own LTV ratios and haircuts for ETH and yield-bearing token collateral. If Aave's CAPO framework is mispricing collateral ahead of this fix, Armada's own benchmarks may currently be too loose. The team should verify that its LTV inputs are sourced from post-update Aave parameters once the governance proposal passes.