April 11, 2022 - Aave News: rAAVE Tickets, Community Call 8, $aSTETH Growth +++
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April 11, 2022 - Aave News: rAAVE Tickets, Community Call 8, $aSTETH Growth +++

A recap of the Aave ecosystem, April 4th to April 10 2022

For anyone with alerts turned on for @letsraave, featuring: Risk 🔎 | Protocol 📰 | Ecosystem 🧉 | Governance ⚖️ | Events 📆 | Hey Anon 👻

Risk 🔎

In case you haven’t seen it, check out the Aave Risk Dashboard by Gauntlet at gov.gauntlet.network/aave. The Gauntlet team is particularly keen on iterating on this dashboard for the community and would love feedback via this Google Form.

For more details on how Gauntlet manages market risk for Aave, please see Gauntlet’s Parameter Recommendation Methodology and Gauntlet’s Model Methodology.

Risk Parameter Updates:

Details can be found in this AIP

A proposal has been passed and executed to adjust six (6) total risk parameters across three (3) Aave V2 assets. In addition, legacy KNC was frozen to speed up the KNC migration and decrease the risk of keeping a less liquid deprecated asset on the platform.

This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets. Gauntlet’s parameter recommendations are driven by an optimization function that balances three core metrics: insolvencies, liquidations, and borrow usage. Parameter recommendations seek to optimize for this objective function. Gauntlet’s agent-based simulations use a wide array of varied input data that changes on a daily basis (including, but not limited to, asset volatility, asset correlation, asset collateral usage, DEX / CEX liquidity, trading volume, the expected market impact of trades, and liquidator behavior). These simulations tease out complex relationships between these inputs that cannot be simply expressed as heuristics.

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Protocol 📰

Ecosystem 🧉

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Governance ⚖️

On-chain votes:

  • Risk Parameter Updates 2022-03-31 | Snapshot | ✅ | Successful proposal from Gauntlet to update six risk parameters across three V2 assets and freeze legacy KNC as part of their continuous risk management and recommendations - read more in Risk 🔎

Snapshot votes:

Other discussions from the forum:

Events 📆

Hey Anon 👻

Hey Anon, are you ready to level up your ankle game?

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