A recap of the Aave ecosystem, November 1st to November 7th 2021
A newsletter to enjoy with the ENS airdrop, featuring coverage onĀ Aave Weekly ā”ļø,Ā Risk š , Aave Grants DAO update š , State of the protocol š° , Ecosystem š§ , Governance āļø, Mark your calendar š ,Ā andĀ Water cooler šAave Weekly ā”ļø
Aave Weekly ā”ļø
Aave Weekly brings readers insights on protocol liquidity, income and other performance metrics.
The Aave Protocol closes week 45 of 2021 with $27.1 billion of liquidity:
- 40.6% Utilisation, generating $10.2m of estimated interest for depositors
- $141m of Flash Loan volume, generating $125k of fees for depositors
- $12.7m liquidated, generating $642k of fees to liquidators
- $1.2m for the ecosystem collectors now holding $29m
- $12.1m generated by the protocol this week
- With an additional $4.6m $StkAAVE, $3.4m $WMATIC & $7.8m $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 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.
Risk Parameter Updates:
This week, AIP-44 passed and was executed. The AIP temporarily disables borrow for xSUSHI and DeFi Pulse Index (DPI), and freezes deposits, borrows, and rate swaps for UNI/BAL AMM Markets. Gauntletās analysis shows that any attempt to manipulate xSUSHI on the Aave Protocol would result in losses for the attackers under the current market conditions, but this AIP was proposed as a precautionary measure to mitigate the potential of any future risks.
In addition, this weekās set of parameter updates includes changes to liquidation threshold, loan to value, and liquidation bonus for the five assets below. The ARC for this set of parameter updates can be foundĀ here. For more detail on Gauntletās first two months of recommendations and their impact, please see GauntletāsĀ Q2 Dynamic Risk ParametersĀ andĀ Monthly Risk Report.
Aave Grants DAO updateĀ š
Vote for the best POAP.Ā Calling all AGD Community Call and rAAVE attendees (with proof via POAP!) - you're eligible to vote for the winner of theĀ Aave Snapshot POAP contest. PleaseĀ browse the designs hereĀ andĀ vote if you hold one of the eligible POAPs.
Ampleforth AMA.Ā Join us for a live AMA with theĀ @AmpleforthOrgĀ team this Tuesday inĀ the main Aave DiscordĀ #ecosystem channel. Have all your questions about lending and borrowing AMPL with Aave answered. Have a question?Ā Reply hereĀ or DM @AaveGrants!
Forta Agent Contest.Ā The latestĀ @FortaProtocolĀ Agent Contest is on now until November 10th. Interested developers can help protect the Aave protocol byĀ choosing from five challenges for the chance to win up to $5000.
Web3Jam.Ā We are sponsoring @ETHGlobal'sĀ last event of the year, Web3Jam from November 12th to November 24th.Ā Apply now to join the virtual community hackathonĀ and help build a web where users control their own data and identity. There are over $100k in prizes including $4000 in $AAVE.
Sacred AMA.Ā Thank you to Aave grant recipientĀ SacredĀ for joining the Aave community for an AMA where they chatted about all things privacy including what they are building, their future roadmap, and multi-chain privacy.Ā Join their DiscordĀ to learn about Sacred or geek out on privacy conversations. ExperienceĀ earning yield while transacting privately on KovanĀ and submit any feedback to theirĀ Feedback Bounty Program.
State of the protocolĀ š°
Aave V3 was announcedĀ and aĀ Snapshot vote is currently liveĀ to get the community's support to deploy V3. New features and upgrades include: Portal, High Efficiency, Isolation Mode, risk management improvements, and L2-specific features.Ā Read through the whole post to get more detailsĀ on what is in store and next steps. Throughout the week, more details and insights emerged like:
- TheĀ ability to repay using aTokens
- The upgrade from V2 to V3 isĀ possible without users needing to migrate their positions
- Aave could become theĀ railway where liquidity movesĀ as protocols plug into Aave for cross chain liquidity
- eMode could enableĀ super efficient FX trading
What are you most looking forward to with Aave V3?
EcosystemĀ š§
- TheĀ multisig for the Risk DAO has been set upĀ and the funding proposal should be live soon
- Apply to work for Aave Grant recipient SolaceĀ and help build cross-chain DeFi coverage products - they are hiring for all roles!
- Earn up to 1.34 $AAVE byĀ solving one of three questionsĀ from Flipside Crypto
- Makers D3M is live andĀ 10 million DAI has been supplied directlyĀ from Maker to Aave V2 -Ā overview from the DefiantĀ š
- Instadapp's classic strategiesĀ are now live for Aave on Avalanche
- Ribbon Finance launched a covered call vault for AaveĀ which allows users to generate yield in their $AAVE
- Stani was on the ScoopĀ to discuss Aave's history from ETH Lend to Arc, why Aave is building decentralized social, and the current state of DeFi š
- Stani was on a panel talking about the future of NFTsĀ atĀ @NFT_LDNĀ withĀ @m1guelpf,Ā @Nifty_Table, andĀ @ricgalbraith
GovernanceĀ āļø
On-chain votes:
- Disable borrow for xSUSHI and DPI. Freeze reserves for UNI and BAL AMM MarketsĀ |Ā Governance discussionĀ | Last Monday AIP-44 was executed which takes precautionary measures to protect Aave V2. Read more inĀ Risk š
Snapshot votes:
- Should Aave V3 be released?Ā |Ā Governance discussionĀ | See more inĀ State of the protocolĀ š°š³ Voting is open from now to November 11th
- Should Aave deploy strategies on sidechains as well, or mainnet strategies only?Ā |Ā Governance discussionĀ | TheĀ community voted to build treasury strategies on multiple chainsĀ opposed to only focusing on mainnet strategies
- Should Gauntlet's Dynamic Risk Parameter engagement be renewed for Q2?Ā |Ā Governance discussionĀ | Gauntlet request to renew their engagement for Q2 showed relative support from the community -Ā the main opposition raised was due to cost
- Should 7 total risk parameters across 5 Aave V2 assets be adjusted?Ā |Ā Governance discussionĀ | As part of Gauntlet's ongoing risk monitoring this AIP changes 7 parameters across 5 Aave V2. Read more inĀ Risk š
Other posts to watch:
- Add support for Terra USD (UST)Ā | A proposal to add UST to Aave V2
- ARC - Aave V2 - Liquidity Mining Program (90 days at 30% reduced rate)Ā | An initial proposal for renewing the liquidity mining program. Look out for a second version fromĀ @Matthew_Graham_Ā incorporating the feedback shared on certain parameters and distributions from the community.
Mark your calendarĀ š
- AMA with AmpleforthĀ - November 9th @ 10am PT | 1pm EST | 5pm UTC
- Web3JamĀ - November 12 - 24
- FTX GalAxie CupĀ - November 27 - 28
- Stani will be speaking atĀ PermissionlessĀ (May 17 - 19, 2022) andĀ CFC St. MoritzĀ (January 12 - 14, 2022)
Water coolerĀ š
Aave V3 good.Ā Don't overthink this one anon.
Join the Aavengers:
- Browse RFPs:Ā https://aavegrants.org/Request-for-Proposals-160203ba5d1746daae31588924a6680a
- Chat with the community on Telegram:Ā https://t.me/aavegrantsdao
- Join the governance forum:Ā https://governance.aave.com
- Learn more about AGD:Ā https://aavegrants.org/