A recap of the Aave ecosystem, December 27th 2021 to January 2nd 2022
For anyone who is still on vacation, featuring coverage on Aave Weekly ⚡️ , 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 1 of 2022 with $26.2 billion of liquidity:
- 45.3% Utilisation, generating $10.8m of estimated interest for depositors
- $51m of Flash Loan volume, generating $46k of fees for depositors
- $5.8m liquidated, generating $392k of fees to liquidators
- $998k for the ecosystem collectors now holding $40.5m
- $12.3m generated by the protocol this week
- With an additional $2.9m $StkAAVE, $4.2m $WMATIC & $2.5m $WAVAX distributed *at the weekly close price
Protocol Liquidity
Protocol Usage
Safety Module
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. This past week saw slight volatility drops and increases in trading volume and liquidity for most assets. Gauntlet’s platform recommends the following set of parameter changes that will decrease liquidation bonuses on several less-utilized assets.
State of the protocol 📰
- StarkWare posted a proposal to deploy Aave on StarkNet✨
- Stani started off 2022 by announcing that Aave is building a mobile wallet - could this kickstart the “layer 3” narrative? 📱
- The RWA Market is now live - read more in the governance post from Centrifuge and check out the market, currently with $3.5m TVL 🌀
- Stani dropped a 206 Tweet thread that highlighted the top accomplishments from the Aave team during 2021 🧵
- Frog Nation shared a new proposal to add UST as a borrow only asset ⚡️
- Llama shared a proposal to consolidate the reserve factors on V1, V2, and the AMM to start earning yield 🦙
Ecosystem 🧉
- Claim a free t-shirt from ETHGlobal if you participated in any of their events this year 👕
- Flipside Crypto analysts provided more insights on Aave including looking at whether a position will get liquidated, and an analysis on whether there is a relationship between transaction costs, borrows, and deposits 💻
Governance ⚖️
On-chain votes:
- No on-chain votes this week
Snapshot votes:
- Should 9 total risk parameters across 7 Aave V2 assets be updated? | 🗳 Voting is open until January 5th
Other discussions:
- ARC: Deploying Aave on StarkNet
- The Centrifuge RWA Market launches today, the first Aave permissioned market
- ARC: Add UST as a borrowable asset
- ARC - Consolidate Aave V1, V2 & AMM Reserve Factors, Purchase CVX and Deploy to Earn Yield
- ARC: Aave Deployment to L2 Optimism
Upcoming Events 📆
- ETHDenver - February 11 - 20, 2022
- Which events should Aave Grants be at in 2022?
Water cooler 🆒
ParaSwap’s fork of the Aave Safety Module is live - which protocol will implement it next?