AAVE, the largest decentralized loan protocol, has proposed to reduce its exposure to governance risks within the Ethereum Layer-2 network, the Scroll ecosystem.
The initiative, presented on September 11 by the Aave Chan (ACI) initiative, occurs in the midst of the growing instability in the Decentralized Scroll governance model.
The proposal describes several defensive measures to protect Aave users and liquidity groups. These include raising the reserve factor for all 90%enumerated assets, reducing supply limits to existing levels and reducing loan cover for all provisions.
According to ACI, these steps will help contain exposure to displacement -based assets, reinforce protocol safety through conservative risk parameters and ensure that AVE can respond quickly if governance interruptions increase.
ACI said that the implementation of the proposal will proceed through the direct process to AIP, which allows a faster implementation of urgent changes.
Defillama data show that AAVE currently has about $ 6 million in total blocked value (TVL) in the displacement, which makes it the chain with one of its smaller liquidity groups.
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Scroll Dao Problems
The urgency of AAVE’s proposal comes from internal agitation in the Decentralized Autonomous Organization (DAO) of Scroll. Scroll announced earlier on the day he had stopped new proposals within his DAO as part of a plan to redesign the government.
Scroll said the decision would allow experimentation with governance models that emphasize efficiency, effectiveness and alignment. The team also emphasized that the pause aims to safeguard short -term stability while establishing the basis for sustainable growth.
Meanwhile, Scroll emphasized that the proposals that have already been approved will continue. However, new presentations will stop until the new structure is introduced.
This movement occurs after leadership turbulence within the DAO. Olimpio, a parchment delegate, confirmed that the leadership of the DAO, known as Eugene, resigned at the beginning of the week.
According to Olimpio, this departure has left the community facing uncertainty, with several stagnant proposals. These include a treasure management initiative, the formation of a Governing Council and a proof of a DAO TIMELOCK mechanism.
