A recap of the Aave ecosystem, November 8th to November 14th 2021
A newsletter to drink your coffee with, featuring coverage on Aave Weekly ⚡️, Risk 🔎 , Aave Grants DAO update 🏗 , State of the protocol 📰 , Ecosystem 🧉 , Governance ⚖️, Upcoming events 📆 , and Water cooler 🆒
Aave Weekly ⚡️
The Aave Weekly Newsletter brings readers insights on protocol liquidity, income and other performance metrics.
The Aave Protocol closes week 46 of 2021 with $27.6 billion of liquidity:
- 40.3% Utilisation, generating $10.8m of estimated interest for depositors
- $339m of Flash Loan volume, generating $305k of fees for depositors
- $2.5m liquidated, generating $145k of fees to liquidators
- $1.3m for the ecosystem collectors now holding $33.6m
- $12.5m generated by the protocol this week
- With an additional $4.5m $StkAAVE, $3.0m $WMATIC & $6.6m $WAVAX distributed
- at the weekly close price
Protocol Liquidity
Protocol Usage
Safety Module
You can download the Aave Weekly pdf from the governance forum.
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.
Aave Grants DAO update 🏗
- Read a transcript of our AMA with the Ampleforth team where they answered all of the community's questions on lending and borrowing $AMPL on Aave
- @ETHGlobal's last event of the year, Web3Jam kicked off on November 12th. You can follow along on ethglobal.tv and if you're participating, happy hacking!
- Our first POAP contest wrapped up this week and the winner was Discord user, omahs#0192. See the design below 👻 Future Snapshot authors can access the Figma link here and add it to their Snapshot vote! Thank you to everyone who submitted designs and voted.
State of the protocol 📰
- The Snapshot vote for community backing to deploy Aave V3 received 100% support 🥳
- One feature of Aave V3 is Portal that makes it possible for any EVM compatible chain to join the Aave ecosystem. This could include Solana, where progress is being made to build a Solana EVM. Stani was quoted in the article saying, "the ability to finally use Solidity smart contracts to access the Solana ecosystem is a game-changer for us, and will drastically improve time to deployment."
Ecosystem 🧉
From grant recipients...
- Join @0x_kakashi from Symphony Finance for an AMA hosted by @BalancerLabs on Nov 17 at 11am EST / 6pm UTC
- Sacred announced that users will be able to lend FRAX privately and earn yield privately through Sacred
- Flipside Crypto showed that 86% of $AAVE they have awarded as part of their community enabled analytics program has stayed in the ecosystem 🤯
Governance ⚖️
On-chain votes:
- Q2 Dynamic Risk Parameters | Governance discussion | A proposal from Gauntlet to renew their "Dynamic Risk Parameters engagement for continuous market risk management to optimize yield, capital efficiency, and mitigate depositor losses" for another quarter, failed to pass. Gauntlet noted that some token holders had difficulties voting. On the governance forum, the main issue raised was around the cost. Look for details on next steps coming from Gauntlet this week.
- Risk Parameter Updates 2021-11-04 | Snapshot vote | Governance discussion | As part of Gauntlet's ongoing risk monitoring this AIP changes 7 parameters across 5 Aave V2. Read more in last week’s Risk 🔎 section.
Snapshot votes:
- Polygon Market - wMATIC Risk Parameter Changes | Governance discussion | A proposal to adjust the LTV and Liquidation Threshold for MATIC on the Polygon market🗳 Voting is live from November 15th to 18th
- Should Aave V3 be released? | Governance discussion | The vote to signal community approval for Aave V3 received unanimous support
- Add support for Terra USD (UST) | Governance discussion | A proposal to add UST to Aave V2 received 93% no votes. The main concern raised was that the risk parameters were too aggressive. Anjan from ParaFi expressed their support in the governance forum and provided a set of less aggressive parameters that could be included in a new Snapshot vote.
Other posts to watch:
- ARC - Aave V2 - Liquidity Mining Program (90 days at 30% reduced rate) | A second draft at renewing the liquidity mining program incorporating the previous feedback was shared by @Matthew_Graham_ and is targeting release of a Snapshot vote later this week
- Raise AMPL’s max interest rate | Gauntlet summarized the ideas outlined and shared their analysis on the AMPL market
Upcoming Events 📆
- Web3Jam - November 12 - 24
- FTX GalAxie Cup - November 27 - 28 Official DAO Partner
- Stani will be speaking at Permissionless (May 17 - 19, 2022) and CFC St. Moritz (January 12 - 14, 2022)
Water cooler 🆒
Multi token liquidity incentives. V3 will enable multiple assets to be rewarded as liquidity incentives giving Aave governance more flexibility, especially once your favourite rollups start releasing tokens 👀
Join the Aavengers:
- Browse RFPs:Â https://aavegrants.org/Request-for-Proposals-160203ba5d1746daae31588924a6680a
- Chat with the community on Telegram:Â https://t.me/aavegrantsdao
- Join the governance forum:Â https://governance.aave.com
- Learn more about AGD:Â https://aavegrants.org/
- Subscribe to Aave News: