LlamaRisk submitted an Aave V3 governance proposal recommending LTV reductions to zero for PYUSD on Ethereum Core, AUSD on Avalanche, wstETH on Gnosis, WETH on Mantle, and WMNT on Mantle. The PYUSD market had $17 million supplied with $3.3 million borrowed against it, and the wstETH borrow cap on Ethereum Core is simultaneously proposed to increase from 1 to 7,000 units, indicating diverging risk assessments across markets.
For Armada's crypto repo desk, Aave V3 governance decisions serve as an industry risk benchmark. A zeroing of wstETH LTV on Gnosis and PYUSD on Ethereum Core signals that risk committees see collateral quality concerns in those specific configurations. Armada should review whether its own haircut schedule for ETH liquid staking derivatives and dollar-pegged stablecoins reflects similar risk differentiation by chain and market context.