March 23, 2022 - First look at V3, Bored Ghosts Developing, Feb Risk Review & More

A recap of the Aave ecosystem, March 14th to 20th 2022

For anyone who has tried out V3, featuring: Risk 🔎, Protocol 📰, Ecosystem 🧉, Governance ⚖️ & Events 📆

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.

For more details on how Gauntlet manages market risk for Aave, please see Gauntlet’s Parameter Recommendation Methodology and Gauntlet’s Model Methodology.

February Risk Review:

Details can be found in this ARC

Gauntlet proposes adjusting six (6) total risk parameters including LTV, Liquidation Threshold, and Liquidation Bonus across five (5) Aave V2 assets. An on-chain vote was initiated on Tuesday, 3/22.

This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets. Gauntlet’s parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Parameter recommendations seek to optimize for this objective function. Our agent-based simulations use a wide array of varied input data that changes on a daily basis (including but not limited to, asset volatility, asset correlation, asset collateral usage, DEX / CEX liquidity, trading volume, expected market impact of trades, and liquidator behavior). Gauntlet’s simulations tease out complex relationships between these inputs that cannot be simply expressed as heuristics. For more details, please see Gauntlet’s Parameter Recommendation Methodology and Gauntlet’s Model Methodology.


Protocol 📰


Ecosystem 🧉

Governance ⚖️

On-chain votes:

Snapshot votes:

Other discussions from the forum:

Events 📆