December 20, 2021 - AHH the Aave Ecosystem is Shippppping: AGD Renewal, Newtverse, RWAMarket, and More 🦎

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 CoopFlipside 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 📰

Ecosystem 🧉

Governance ⚖️

On-chain votes:

Snapshot votes:

Other discussions:

Upcoming Events 📆

Water cooler 🆒

Moving big value cross-chain? Child’s play once v3 is live

Browse RFPs

Join the governance forum

Learn more about Aave Grants