A recap of the Aave ecosystem, May 30th to June 5th 2022

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Gauntlet’s Parameter Recommendation MethodologyGauntlet’s Model Methodology

Risk Parameter Updates:

this ARC

AIP-78

Given the current levels of risk in V2, our optimization engine recommends lowering liquidation threshold for LINK and WETH. As such, this set of parameter changes may partially force-liquidate a few recursive borrow users on V2. Although it is essential to recalibrate risk on Aave to avoid potential liquidation cascades and insolvency, after gathering community feedback, we have decided to postpone these parameter changes. Our analysis shows that the potential forced liquidations will be very small. Gauntlet values transparency and is drafting a communications framework to better notify users of parameter changes like these moving forward.

AIP-78 also included parameter changes to the Aave Arc market. These changes are independent and separate from the V2 parameter changes, so Gauntlet will put up another on-chain vote specifically for the Aave Arc parameter updates tomorrow, 6/7/2022.

On-chain votes:

Snapshot votes:

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