Aave · 2026-11-09 00:44 UTC

New governance forum thread at: @oraclethaacat Per-Asset Liquidation Thresholds Underpredict Co-Liquidation by 301× [Risk] Aave V3 computes liquidation risk per asset. Each collateral asset has its own maximum LTV and liquidation threshold, set independently. The health factor is a weighted average. There is no term for correlation between assets. I tested whether this independence assumption holds, using Aave’s own published parameters and public daily price data from Yahoo Finance. Nine major collateral assets, 2,1...

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