For anyone who is collecting Proof of Aave News on Lenster, featuring: Spotlight 🔦 | Risk 🔎 | Protocol 📰 | Ecosystem 🧉 | Governance ⚖️ | Events 📆 | Hey Anon 👻
Spotlight: HAL 🔦
HAL allows Aave users to set notifications to receive updates about their health factor on one of the following channels: Telegram, Discord, Slack, email, Twitter or by calling a webhook. HAL supports 2 kinds of notifications for Aave HF - by threshold and periodically 👻
🥦 HF by threshold: Get a notification when your health factor falls below the threshold you defined.
🕜 HF periodically: Get your health factor data every hour/day/week at a time you choose.
Risk 🔎
stETH has emerged over recent months as one of the most popular collateral types on AAVE. Many users have deposited stETH and borrowed ETH against it. This means that if those prices diverge or the asset “depegs”, there could be a lot of liquidations in AAVE. There has been much speculation on the risks posed by a stETH/ETH price depeg on the protocol and we wanted to follow up on Paul’s last post 59 to provide an update. Late 6/10 Gauntlet observed a large spike in AAVE VaR due to volatility in stETH price and immediately investigated it further.
TL;DR: Current market liquidity is very likely sufficient to handle expected liquidations in the protocol and no immediate parameter changes or risk mitigations are necessary. The AAVE community may want to temporarily freeze the stETH market and pause ETH borrows as an extra precaution.
Please see the link to a full write up on the above to learn more.
As mentioned in last week’s newsletter, please check out the Aave V2 Risk Dashboard by Gauntlet at gov.gauntlet.network/aave. Gauntlet has also launched the Aave Arc Risk Dashboard. Feedback and engagement from the community is welcomed 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:
Despite the support in the previous proposal and unanimous support for Aave Arc recs, the proposal failed to reach quorum. 253.14K votes were compiled, all of which in favor of the rec proposal, however the 320k total required vote was not reached. Gauntlet will look to put them up again in the near future and we encourage the community to review and engage.
Protocol 📰
- Read an update on the latest from the Aave <> Starkware Phase 1 partnership
- Aave V3 was deployed on the Ropsten Testnet so the community can start #TestingTheMerge
- After a successful on-chain vote, CVX has been added to the v2 market
- BGDLabs has officially been contributing to the protocol for one month - read the update, including progress on the 13 items they have started working on and what they are focusing on next
Ecosystem 🧉
- Congrats to early Aave Grants recipient Atlendis Labs for launching the V1 of the Atlendis protocol!
- Llama shared the April Financial Report
Governance ⚖️
On-chain votes:
- Renew allowance of the Aave Safety Module | Governance discussion | 🗳 Vote until June 16th
- Consolidate Reserve Factors and Enable Borrowing DPI | Governance discussion | ✅
- Add CVX to Aave V2 | Governance discussion | ✅
- Risk Parameter Updates for Aave Arc (Fireblocks) 2022-05-26 | Governance discussion | ❌
Snapshot votes:
- Integrate Pocket RPC in Aave | Governance discussion | ✅ 117k AAVE
- Add Rocket Pool's rETH on Aave v2 Mainnet Market | Governance discussion | ✅ 46k AAVE
- ARC: Add GNO to Aave V2 | Governance discussion | ✅ 182k AAVE
Other discussions from the forum:
- BGD. Proposal for Bounty. Fallback oracle misconfiguration
- ARC Round 5 Liquidity Mining Aave v2 Ethereum Market
- Proposal: Add support for rETH Token
- ARC: Add support for LUSD (Liquity)
- Aave DAO <> Governance House
- BGD. Release - Aave Address Book
- BGD. Rescue of tokens locked on Aave. Overview and Phase 1
Events 📆
- GR14 - June 8 - 23
- DAO NYC - June 22 → Including a panel on Treasury Management featuring AGD Lead @HelloShreyas and AGD Reviewer @francisgowen, & a panel on Why are DAOs Different featuring AGD Reviewer @aIekslarsen
- EthCC[5] - July 19 - 22
Hey Anon 👻
If you were staking in the Safety Module as of May 18th, you are eligible to mint a lens profile. Join the next-gen social platform and follow us at AaveGrants.lens 🌿