A recap of the Aave ecosystem, December 13th to 19th 2021
For anyone who is feeling newt, featuring coverage on Aave Weekly ⚡️ , Aave Grants DAO 🏗 , Risk 🔎, State of the protocol 📰 , Ecosystem 🧉 , Governance ⚖️, Upcoming events 📆 , and Water cooler 🆒
Aave Weekly ⚡️
The Aave Weekly Newsletter brings readers insights on protocol liquidity, income and other performance metrics.
The Aave Protocol closes week 51 of 2021 with $25.0 billion of liquidity:
- 44.6% Utilisation, generating $9.7m of estimated interest for depositors
- $138m of Flash Loan volume, generating $123k of fees for depositors
- $19.0m liquidated, generating $1.3m of fees to liquidators
- $865k for the ecosystem collectors now holding $37.6m
- $12.0m generated by the protocol this week
- With an additional $2.0m $StkAAVE, $3.7m $WMATIC & $2.6m $WAVAX distributedat the weekly close price
Protocol Liquidity
Protocol Usage
Safety Module
You can download the Aave Weekly pdf from the governance forum.
Aave Grants DAO 🏗
The proposal to renew Aave Grants passed an on-chain vote with unanimous support from the community. This increases funding to $2m for the next quarter to continue supporting teams, events, and other sponsorships that strengthen the Aave ecosystem. Thank you to Index Coop, Flipside Crypto, and everyone else in the community who voted YAE and are in favour of more Aave Grants 👻
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.
Risk Parameter Updates:
Details can be found in this ARC
This week's set of parameter updates includes adjusting nine (9) total risk parameters across seven (7) Aave V2 assets including LTV, Liquidation Threshold, and Liquidation Bonus. In addition, Gauntlet proposes freezing the KNCL reserve to speed up the KNC migration as well as eliminating the risk of keeping a less liquid deprecated asset on the platform.
The recent market downturn on the weekend of December 4th led to the most liquidations on both centralized exchanges and in liquidity protocols in the recent past. Although volatility for assets is slightly higher, the abundance of liquidity and active market participants is a positive sign for the health of Aave. Multiple liquidations of over $400,000 USD occurred in quick succession. This shows ample liquidity for liquidators even in times of high network congestion. Although some assets currently have higher volatility, Gauntlet’s analysis shows that it is safe to increase borrowing parameters and decrease liquidation bonus values. Gauntlet’s simulations study price drops and network congestion more extreme than was seen last week, and slippage and liquidity considerations have improved.
State of the protocol 📰
- The Aave core team introduced Newt, the experimental arm of Aave dedicated to building and innovating in total transparency. Find out more at wearenewt.xyz 🧪🥽🦎
- The RWAMarket built on Aave & Centrifuge is launching very soon - users can now start onboarding and completing the KYC process so they are ready for launch. Join them from a Holiday AMA tomorrow to learn more if you have any questions
- Aave Arc has it’s first liquidity provider! Anubi Digital made the genesis deposit into the ETH market 🥳
- Users can experience increased yields, greater capital efficiency, and deeper liquidity with Aave Boosted Pools from Balancer Labs
- Conversations continued around ‘Business License’ emerging as the top option from the Snapshot vote to determine which license to release V3 under, including an explanation from @yeoujie on Definance’s vote
Ecosystem 🧉
- Llama released November’s set of financial statements
- OpenZeppelin shared the audit results for Tally’s Safeguard - a governance lego that increases transparency and accountability within DAOs
- Tally is also hiring “for a Developer Advocate to help lead the faithful to the DAO Land!” - hit up Dennison if this is you 🧑💻
- Solace’s “A Letter to Santa” writing contest is open until December 21st - share your wish for DeFi and you could win 800 $SOLACE!
- JellyFi shared a Year in Review looking back at 2021
- DeFiCon took place this week - stay tuned to see recordings from the conference including Stani talking about DeFi for Institutional "Degens”
- DeFi Llama now shows Aave data across L1, Polygon, and Avalanche - the most up to date source available 👻💙🦙
Governance ⚖️
On-chain votes:
- Renew Aave Grants DAO | Governance discussion | The AIP to renew Aave Grants DAO passed governance, read more in Aave Grants DAO 🏗
Snapshot votes:
- Should 9 total risk parameters across 7 Aave V2 assets be adjusted? | Governance discussion | 🗳 Voting is live until December 20th at 5PM EST | Read more in Risk 🔎 and look out for a corresponding AIP this week
- Do you want HAL integration? | Governance discussion | The community voted 100% (47.68k AAVE) in favour of adding the HAL notification system into the Aave UI
- Certora Continuous Formal Verification for Governance and Aave Community | Governance discussion | The temperature check received 80.2% (90.2k AAVE) YES votes and 19.8% (22.3k AAVE) NO votes
- Appoint Securitize as a Whitelister to Aave Arc | Governance discussion | The temperature check received 99.9% (389.4k AAVE) YES votes
Other discussions:
- Can we introduce some incentives/utility for holding AAVE token?
- Aave V3 Launch strategy: Code licensing
- Aave - Treasury Report
- ARC: Aave Centrifuge Permissioned “RWA” Market Proposal
Upcoming Events 📆
- ETHDenver - February 11 - 20, 2022
- Stani will be speaking at Permissionless (May 17 - 19, 2022) and CFC St. Moritz (January 12 - 14, 2022)
Water cooler 🆒
Moving big value cross-chain? Child’s play once v3 is live
