A recap of the Aave ecosystem, March 21st to 27th 2022
For anyone who will watch Stani on Bankless this week, featuring: Spotlight 🔦, Risk 🔎, Protocol 📰, Ecosystem 🧉, Governance ⚖️, Events 📆 & Hey Anon 👻
Imagine if Aave Aave and Tornado Cash had a baby... that’s Sacred! They are an Aave Grant recipient and are joining us to share about their early contributors program
Spotlight: Sacred 🔦
Sacred has built an Early Contributors Program which is rewarding users who put substantial contributions to forward the intersection of DeFi and Privacy and is the first mixer that will be allowing users to generate yield while still maintaining privacy.
Sacred was awarded its Aave Grant in Q3 of 2021. While traditional mixers hold users assets and provide privacy for users, Sacred discovered the opportunity for users to generate yield while their assets are being held inside its mixer, which Aave makes possible.
The Aave integration is extremely beneficial to users of Aave who don’t want their assets to be observed by providing an extra layer of security.
Contributors with diverse backgrounds and skillsets will be leading Sacred’s operations as tasks are submitted, rewards are distributed for the value provided, and ownership in the development of the protocol decentralizes.
While the Early Contributors Program has delegated tasks for builders of the protocol, it is not closed off to mentors, partners from VC firms, or executives at DeFi protocols. If you have a substantial contribution — the ability to generate yield or venture strategies, developer skills, a background in data science, or even access to content development mediums (videos, podcasts, infographics), Sacred welcomes you to participate, make some $SACRED and put your name behind the upcoming protocol leading innovation in the intersection of DeFi and Privacy.
How The Sacred Contributor Program Works
The program has flexible workstreams. Each workstream is segmented depending on the needs and resources of the project. For example, to start Sacred will be opening its Community (Privacy-Is-Sacred) workstream, Marketing workstream, Development workstream and Policy & Strategy workstream. As Sacred grows, more workstreams will be added, and they will evolve and expand with the needs and resources of the community, the ecosystem, and the DAO.
To contribute: Go to the Contributor Dashboard on Sacred’s Discord
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.
Risk Parameter Updates:
Details can be found in this AIP
This week, Gauntlet executed AIP 67. This proposal adjusted six (6) total risk parameters including LTV, Liquidation Threshold, and Liquidation Bonus across five (5) Aave V2 assets.
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.
Risk Dashboard:
Gauntlet has added STETH and ENS to its Risk Dashboard following the addition of these assets to Aave V2.
Protocol 📰
- An on-chain vote to optimize the rate curve for ETH & improve revenue generation for the protocol was successful
- Llama proposed a treasury swap with Balancer that would see Aave acquire 300,000 BAL. The BAL would be used to earn yield and direct incentives in Balancer's new tokenomics system - read more details in Llama’s newsletter and their governance post
- Starkware shared an update on what has been done in the first three weeks since Phase I kicked off and what’s next
- Certora shared an update including their verification report for V3 and details on their $200k grants program
- Take a crash course in the new V3 features with Tally’s latest newsletter
- Read about the potential of portals to grow to billions of dollars per day in volume and upgrade Aave to a Liquidity-as-a-Service (LaaS) provider
Ecosystem 🧉
- Aave Fam was spotted across the Avalanche Summit in Barcelona including: Stani sharing alpha on V3, Rebecca talking about CBDCs, Stani on a panel with Metis & Emilio diving deep into protocol security and decentralized development - what was your favourite moment from the conference?
- Shreyas joined ETHIndia for a conversation on all things DAOs
- BGD Labs hosted a Twitter Spaces to discuss their recent proposal
- Grant recipient Increment launched their CARE program which will provide a comprehensive pre-audit review of their codebase, further optimizing their audit-readiness before official audits from Peckshield and Trail of Bits
- Listen to Stani on the Scoop Podcast discuss Aave V3 and more including where the next rAAVE will be
- ETHGlobal officially announced ETHAmsterdam
- Rewatch LFGrow - the virtual hackathon between Lens Protocol and ETHGlobal building the future of web3 social 🌱
Governance ⚖️
On-chain votes:
- Optimizing ETH rates | Governance discussion | ✅
- Risk Parameter Updates 2022-03-22 | Governance discussion | ✅
Snapshot votes:
- Add MAI to Aave V3 on Polygon, Fantom, and Avalanche | Governance discussion | Vote from March 29th to April 1st
Discussions from the governance forum:
- Aave <> Bored Ghosts Developing (BGD)
- Proposal: Add Support for stMATIC (Lido)
- ARC: Governance Framework For Alternative Chain Proposals
- ARC: Governance process for RWA Market
- Avalanche Market - add sAVAX to Aave v3, raise LTV of AVAX
- ARC: Adding Multi-Collateral DAI to the Aave ARC Market
- Stop the AAVE Migration and recover 4% of the AAVE supply
Events 📆
- LFGrow - March 18 - 30
- Avalanche Summit - March 22 - 27
- ETHAmsterdam - April 22 - 24
- Permissionless - May 17 - 19
- NFTBERLINÂ - May 25 - 27
Hey Anon 👻
Psst… hey anon, you should follow @eboadom