A recap of the Aave ecosystem, March 14th to 20th 2022
For anyone who hasĀ tried out V3, featuring:Ā Risk š, Protocol š°, Ecosystem š§, Governance āļø & Events š
Risk š
In case you havenāt seen it, check out the Aave Risk Dashboard by Gauntlet atĀ gov.gauntlet.network/aave. The Gauntlet team is particularly keen on iterating on this dashboard for the community and would love feedback via thisĀ Google Form.
For more details on how Gauntlet manages market risk for Aave, please seeĀ Gauntletās Parameter Recommendation MethodologyĀ andĀ Gauntletās Model Methodology.
February Risk Review:
Details can be found inĀ 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. Gauntletās 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). Gauntletās simulations tease out complex relationships between these inputs that cannot be simply expressed as heuristics. For more details, please seeĀ Gauntletās Parameter Recommendation MethodologyĀ andĀ Gauntletās Model Methodology.
ProtocolĀ š°
- Bored Ghosts Developing (BGD), a group of three OG Aave contributors,Ā shared a proposal to support ecosystem developmentĀ for the next 15 months - they have already started work on the conversation ofĀ next steps with the migration from LEND
- There isĀ more than $1B of stETHĀ from Lido Finance now on V2
- If you missed V3 going live last week, see anĀ overview of the new featuresĀ and theĀ initial traction on each network
EcosystemĀ š§
- Rewatch LFGrowĀ - the virtual hackathon between Lens Protocol and ETHGlobal building the future of web3 social š±
- Aave University Blockchain Club in UgandaĀ shared an update on two meetups hosted in MarchĀ - the next one is planned for April!
GovernanceĀ āļø
On-chain votes:
- Risk Parameter Updates 2022-03-22Ā | š³ Vote until March 25th
Snapshot votes:
- Should six (6) total risk parameters across five (5) Aave V2 assets be updated?Ā | Governance discussion | ā
Other discussions from the forum:
- Stop the AAVE Migration and recover 4% of the AAVE supply
- Avalanche Market - add sAVAX to aave v3, raise LTV of AVAX
- Add EURS on Aave v3
- Market Risk Monthly (February 2022): Updates and Review
- Proposal: Add support for rETH Token
- ARC: Add support for CVX (Convex Finance Token)
Events š
- LFGrowĀ - March 18 - 30
- Avalanche SummitĀ - March 22 - 27
- ETH AmsterdamĀ - April 22 - 24
- PermissionlessĀ - May 17 - 19
