June 21 - New Grantees, GR14, DAO NYC, Sigma Prime Proposal & More

A recap of the Aave ecosystem, June 13th to June 19th 2022

For anyone who thinks open source, transparent and auditable finance is the future, featuring: Spotlight 🔦 | Risk 🔎 | Protocol 📰 | Ecosystem 🧉 | Governance ⚖️ | Events 📆 | Hey Anon 👻

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Spotlight: GR14 🔦

GR14 is live until June 23rd: Donate now including to the Crypto Advocacy cause round 🤖🌍 Plus you can be eligible to mint a Lens handle 🌿


Risk 🔎

In case you haven’t seen it, check out the AAVE V2 Risk Dashboard by Gauntlet at gov.gauntlet.network/aave.  Gauntlet has also launched the AAVE Arc Risk Dashboard. The Gauntlet team is particularly keen on iterating on this dashboard for the community and would love feedback 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.

Staked ETH and AAVE Risk:

Details can be found in this AIP

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.

Starting June 10, Gauntlet observed a large spike in AAVE Value at Risk due to volatility in stETH price and immediately investigated it further. In AIP-83, Gauntlet proposed the following steps to mitigate the chance of a liquidation spiral negatively impacting AAVE tokenholders and users:

  1. Freeze the stETH market
  2. Increase LT for stETH to 90%
  3. Pause ETH borrowing

On June 15, an updated analysis regarding the stETH/ETH price deviation and largest user positions no longer necessitated the AIP-83 changes. As such, Gauntlet requested abstaining from the vote.

Proposal AIP-83 has failed as per our updated recommendation above. Gauntlet continues to monitor stETH and the broader market and will share a post-mortem with the AAVE community.

AAVE Arc Capital Efficiency Improvements:

Details can be found in this AIP

Gauntlet’s proposal to increase capital efficiency for the AAVE Arc market (AIP-81) did not reach quorum despite a unanimous YAE vote. We will put up another AIP for these recs later today.

Protocol 📰

Ecosystem 🧉

  • Aave Grants announced 15 new grantees: congrats to Buckets, LiV, DoDAO, User Risk Monitoring and Control Dashboard, Aave Flash Transfer, Alien Robot Ninja, Governance Bot, The Unit, Mango, Strips Finance, Shippooor Dashboard, IndexZoo, Gitcoin, Lifetise, & Deltaport 🥳
  • Aave Grants DAO Analyst: We are hiring for a full time analyst role - apply now!
  • DAO NYC: If you’re in NYC this week be sure to check out Aave Grants at DAO NYC on June 22nd → more details in Events 📆
  • Increment Raise: Congrats to grantee Increment on their seed round! 💹
  • Certora Continuous Formal Verification Report May 2022: Read the full update including an ERC20 listing checking toll, community grant plan, and verification dashboard
  • Aave Clubhouse: Atlantis World teased their Aave clubhouse from their upcoming alpha v2 👀
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Governance ⚖️

On-chain votes:

Snapshot votes:

Other discussions from the forum:

Events 📆

Hey Anon 👻

You’re really buying into the FUD again, anon?


Learn more about Aave Grants

Join the Gov Forum