POC-020 · Aave Governance Instant Liquidation
ProtocolAave V3 Governance
CouplingL6×L5 — vote→liquidation
MechanismLT reduction → instant liquidation
BufferNONE — direct coupling
Adelic sorry: governance vote IS instant liquidation instruction — L6→L5 coupling has no buffer. Minimum governance power can liquidate $1B.
Theorem: aave_gov_instant_l5
LT_reduce(ΔLT) → immediate_liquidation(positions)
Mechanism:
Governance vote passes: LT reduced by ΔLT
→ all positions with HF < 1/(1-ΔLT) become liquidatable
→ liquidation bots execute immediately
→ no grace period · no buffer
→ L6 vote = L5 liquidation trigger
LT REDUCTION MATH
Liquidation threshold (LT):
Health Factor (HF) = (collateral × LT) / debt
If governance reduces LT from 80% to 75%:
Old HF = 1.05 (safe)
New HF = 1.05 × (75/80) = 0.984 (liquidatable)
→ immediately liquidatable
To liquidate $1B TVL:
Find ΔLT that makes HF < 1 for $1B positions
ΔLT = (HF_current - 1) × LT_current / HF_current
E.g. ΔLT = 5% → liquidates all positions with HF < 1.06
Governance power required:
Aave governance: 320,000 AAVE votes to pass
~$100M AAVE market cap exposure
vs $1B+ TVL liquidation impact
ROI: 10:1+ · governance attack is economically rational
ADELIC LAYER ANALYSIS
L6 (ℚ₁₃)Aave DAO governance vote
L5 (ℚ₁₁)Liquidation engine
CouplingGovernance vote directly triggers L5
Missing bufferNo grace period between L6→L5
Black hole analogy:
L6 = governance orbit (outer ring)
L5 = control/liquidation orbit (inner)
Normal: governance votes → params update → L5 reads new params
Attack: vote-particle enters L5 DIRECTLY
No intermediate orbit = no buffer
All healthy positions spaghettified simultaneously