A recap of the Aave ecosystem, January 17th to 23rd 2022
For everyone who thinks that maybe it’s something, featuring: Spotlight 🔦 , Aave Weekly ⚡️ , Risk 🔎 , State of the protocol 📰 , Ecosystem 🧉 , Governance ⚖️, Upcoming events 📆 , and Water cooler 🆒
Spotlight: Reputation DAO 🔦
- Reputation DAO is building a transparent, open and privacy focused reputation system. The DAO will provide reputation scores, models and visualizations as a neutral service for application users and builders. The aim is to democratize reputation and credit systems through a DAO-based voting structure.
- The first application for Reputation DAO is Oracle Reputation which is what Aave awarded the DAO a grant for. Oracle Reputation ranks and visualizes the Chainlink Oracle Network, allowing users to understand how reliable data feeds are and how this affects smart contracts. Check out the integration here.
- Reputation DAO was awarded an Aave grant in late 2021 to integrate their Protocol Visualization Environment (PVE) feature. The PVE is a widget that will sit on the Aave front-end. Clicking the widget will allow users to visit their site and inspect the security of the Chainlink Oracle Networks that Aave uses.
- “There is no better first integration than Aave”. The team was attracted to Aave because of its status as a blue-chip protocol, the strong DAO, and high DeFi safety score.
- A new reputation DAO website will be launching shortly along with a full roadmap which will detail their expansion beyond Oracles into credit scoring, DAO reputation, NFT Reputation and a host of other exciting applications. In the meantime, check out this article for the rationale behind why Reputation is becoming a DAO.
- Keep up to date by following the Reputation DAO on Twitter and joining their Discord.
Aave Weekly ⚡️
The Aave Weekly Newsletter brings readers insights on protocol liquidity, income and other performance metrics.
The Aave Protocol closes week 4 of 2022 with $20.5 billion of liquidity:
- 44.9% Utilization, generating $6.9m of estimated interest for depositors
- $135m of Flash Loan volume, generating $120k of fees for depositors
- $117m liquidated, generating $7.7m of fees to liquidators
- $806k for the ecosystem collectors now holding $41.0m
- $15.5m generated by the protocol this week
- With an additional $1.7m $StkAAVE, $2.7m $WMATIC & $2.6m $WAVAX distributedat the weekly close price*Avalanche figures estimated
Protocol Liquidity
Protocol Usage
Safety Module
You can download the Aave Weekly pdf from the governance forum.
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 AIP
This week, AIP 55 was passed and executed to enable FEI as a collateral asset on Aave V2. The initial parameters for FEI are an LTV of 50%, a Liquidation Threshold of 60%, and a Liquidation Bonus of 6.5%. The Gauntlet platform analyzed the financial risks of FEI in order to arrive at its parameterization recommendations, while the FEI team provided analysis on the technical risks.
Enabling assets as collateral on Aave is a growth driver for the protocol, but must be done so safely. The passing of AIP 55 marks an opportunity to strengthen the ecosystems of both Aave and FEI.
State of the protocol 📰
- Check out details on the evolution of Aave governance, Aave Governance V3, which leverages Starkware and SnapshotX 👀
- An AIP to list BAL, CRV, DPI, GHST, LINK, and SUSHI from the V2 market onto the Polygon Market, and to add GHST as a new asset on the Polygon market is now live for voting 🗳
- Aave Grant recipient HAL has had their notification system successfully integrated into the Aave front end. Users can now easily set up alerts to be triggered about their position and sent to their channel of choice 🔔
Ecosystem 🧉
- DappLooker shared an update on the Aave Polygon User Retention Dashboard that they have been building. The dashboard includes metric such as total transactions, users with more than one transactions, and unique users 📊
- YOLO V2 by Symphony Finance is now live on Avalanche so users can earn yield and enjoy auto-compounding on their limit orders 🎵
- Flipside Crypto is hiring for a Governance Contributor 💻
- Llama released December financial statements for Aave which illustrates large growth on Polygon and Avalanche 🦙
- The winning POAP to recognize 2021 Aave News winners has been selected. Thank you to everyone who submitted designs and voted and congratualtions to Discord users: diablo_verde and TWamadeus 🎉
Governance ⚖️
On-chain votes:
- Add Assets to Aave Polygon Market and Update WMATIC Risk Parameters | Governance discussion | 🗳 Voting open until January 27th
- Enable FEI as Collateral on Aave V2 | Governance Discussion | ✅ Passed
Snapshot votes:
- Approve bounty of xSUSHI's incident | Governance discussion | 🗳 Voting is open until until January 25th
- Adding SEBA Bank as a Whitelister to Aave ARC | Governance discussion | 🗳 Voting is open until January 26th
Other discussions:
- Listing Proposal: Add VSQ (Vesq) in an isolated lending market [Polygon Network]
- ARC: Add Support for LUSD
- ARC: Add UST as a borrowable asset
- Add MIM to Aave V2
- ARC - Consolidate Aave V1, V2 & AMM Reserve Factors, Purchase CVX and Deploy to Earn Yield
- Aave - Treasury Report
- [Portals] Powering the Multi-blockchain multiverse
Upcoming Events 📆
- Aave Grants Community Call - February 7th
- ETHDenver - February 11 - 20, 2022
