A recap of the Aave ecosystem, September 13th to September 19th 2021
Want to get up to speed on the past week in Aave? Keep reading Aave News for coverage on: Aave Weekly ⚡️, Aave Grants DAO update 🏗 , State of the protocol 📰 , Ecosystem 🧉 , Governance ⚖️, Mark your calendar 📆 , and Water cooler 🆒
Aave Weekly ⚡️
For those who missed it, Aave News is now the home of the Aave Weekly Newsletter which features insights on protocol liquidity, income and other performance metrics.
The Aave Protocol closes week 38 of 2021 with $24.5 billion of liquidity:
- 43.6% utilisation, generating $9.8m of estimated interest for depositors
- $47.4m of Flash Loan volume, generating $40k of fees for depositors
- $26.4m liquidated, generating $1.3m of fees to liquidators
- $1.1m for the ecosystem collectors now holding $21m
- 12.3m generated by the protocol this week
- With an additional $5.3m $StkAAVE & $2.1m $WMATIC distributed
- at the weekly close price
Protocol Liquidity
Protocol Usage
Safety Module
You can download the Aave Weekly pdf from the governance forum.
Aave Grants DAO update 🏗
AGDCC4. The fourth Aave Grants DAO Community Call was hosted on September 14th. A big thank you to all the community members who attended, the awesome speakers who came out to share, and everyone who stuck around afterwards for an AMA. Here is an overview of each speaker - any omissions or errors are from the author.
Updates on Aave Grants DAO |Â @HelloShreyas
- Ten new grantees were announced since the last call
- The team trialed using Aave's Snapshot space to get a temperature check from the community before rewarding a large grant for @2001eth to build a mobile app
Update from Aavegotchi | @coderdannn | Aavegotchi Discord
- About Aavegotchi. Aave's aTokens are staked in each Aavegotchi to create an interest bearing NFT. Haunt 2 recently finished, a second issuance of Aavegotchi's which was voted upon by the DAO. The issuance used a GBM bid to earn auction that distributed over 750,000 GHST and had over 2800 participants.
- GHST. A Snapshot vote a few weeks ago showed overwhelming support to have GHST listed on Aave's Polygon market. Once the cross-chain bridge goes live, the team will raise the necessary proposition power and submit the on-chain vote. GHST being listed on Aave will enable new things like Gotchis that are backed with GHST as collateral, and marks Aavegotchi coming full circle as one of the first Aave grant recipients over a year ago.
- Upcoming. Look out for a chance to buy REALM parcels in the Aavegotchi Gotchiverse, a fully online multiplayer RPG including yield farming on-chain with all your #GotchiGang.
AGD Project: Sacred Finance| @1_fineapple | Sacred.Finance
- About Sacred. "If Aave and Tornado Cash had a baby, it would be Sacred Finance". Sacred Finance's vision is to be a privacy lego block on top of many DeFi protocols. By leveraging lending platforms like Aave, the smart contract holding users deposits are able to earn yield. Users will be able to make private payments and to earn yield privately. They also have some mechanisms planned to incentive users to increase TVL 👀
- Upcoming. Scheduled to launch their test net in early October (look out for bounties), finishing audits, gathering feedback and testing before their main net launch in November, and building their community in preparation of their DAO launch.
AGD Project: Solace | @NikitaBuzovEth | Solace.fi
- About Solace. Solace is a decentralized coverage protocol that has created a mechanism to protect users from inherent risks in DeFi protocols like smart contract exploits, hacks, and other technical failures.
- When Nikita started building three years ago he saw major problems around capital efficiency, risk assessment, and usability. Solace...
- Increases capital efficiency with a single capital pool backing all the risk assessors and different products
- Uses an intelligent risk assessment where anyone can submit a risk assessment to the capital pool who can choose to accept the risk manager and allocate a certain capacity from the capital pool to that particular manager
- Has built a system that does claim validation and payout in a single transaction to improve the usability compared to having claims assessed by a committee
- Upcoming. Working to become more public with announcements in the next few weeks, deploying a DAO with core team members, have one audit done and another one starting, and they are hiring for every role - reach out on Solace.fi or message Nikita on Twitter 💼 👀
Aave Grants DAO RFPs: unanswered high priority RFPs |Â @corbpage
- The AGD team maintains an active RFP page of things that need to be built - it's a great place to direct any of your TradFi friends who might want to dip their toes into the DeFi space.
- High priority RFPs include (view all current proposals):
- Governance UI. An Aave owned front-end for governance and voting
- Stablecoin growth. Build projects and integrations that bring more stablecoin deposits into Aave
- Aave Weekly Analytics Report. Including analysis on liquidity, usage of Aave markets and usage of Aave on other chains
- Developers DAO. Still open for applications to support core protocol development of the Aave protocol and looking for a full time team lead 💼 👀
- What do you want to see built on Aave? Tag @corbpage or @AaveGrants with any ideas!
Update from Stani |Â @StaniKulechov
- DeFi and Web3 continues moving fast and the Aave team continues to grow
- Aave wants to build more than DeFi so expect more experiments as the team sees what gains traction
- How do we get more people to build in the community? How can we build a Developers DAO and get more contributions? How can we create a process where the DAO can run autonomously?
Technical Updates |Â @The3D_
Major technical updates since the last community call include:
- Open sourcing the Aave front end which allows users to host their own front end and enables the protocol to be available at all times without relying on third parties
- Release and testing of the cross-chain governance bridge which will give Aave holders the ability to govern across multiple chains - it should be available soon and just in time as Aave begins moving cross chain. A bridge to Arbitrum was included in the initial release but, as of now, there is no official deployment of Aave yet 👀
Governance updates |Â @statelayer
Since the last community call, the on-chain governance portal has been busy including:
- Gauntlet got a grant to work on dynamic risk parameters and made related proposals including updating the risk parameters of the protocol to be 'Moderate' after the community indicated their preference in a Snapshot vote
- New assets on Aave V2: DPI and FRAX and (as of Sunday!) FEI
- ParaFi proposed extending the liquidity mining rewards and including a larger list of assets
- Cross-chain governance test on Polygon
Other governance updates:
- Penn Blockchain and Standard Crypto received significant delegation
- Aave's Snapshot space has been active with votes and interesting experimentation like Gauntlet giving users three different risk tolerances to choose between and then submitting an on-chain vote based on the result
Update from Gauntlet |Â @inkymaze
- Shared Market Risk Monthly: Updates and Review to keep the community informed following the one month mark since the passing of Gauntlet's AIP - so far they have changed 28 parameters across 16 V2 assets
- Look out for an analysis on the impact of the recent changes to the LTV and liquidation thresholds
- Experimenting with making market risk more digestible for the community - going to batch updates more frequently now that Gauntlet better understands the community's risk tolerance e.g. Monday - ARC, Tuesday to Friday - voting on Snapshot, and then the following Monday - AIP
Update from Harmony | @lijiang2087 and @givp | ARC: Aave Market Launch on Harmony | Snapshot vote
- Harmony is an EVM compatible L1 blockchain that is fast, scalable and affordable to use that has been around for 2 years
- They are focused on bringing new users to DeFi and recently partnered with Sushi so they are familiar with the deployment process
- The proposal includes a $5 million liquidity mining program over a year, as well as the potential to tap into their larger ecosystem fund
Update from Centrifuge | @_schmitted and @offerijns | ARC: Aave Centrifuge Permissioned “RWA” Market Proposal | Snapshot vote
- Centrifuge is working to bring real world assets into crypto, the idea of the proposal is to bring assets that are already locked in their protocol to Aave
- Snapshot vote to launch a real world permissioned asset market got overwhelming support
Update from Avalanche | @luigidemeo and @jayks17 | Aave Deployment on Avalanche (published after the call) | Snapshot vote
- Joining the call ahead of the proposal they will be submitting to deploy Aave on Avalanche
- Part of Avalanche Rush that will see $20 million AVAX in Phase 1 of liquidity rewards over 3 months for Aave users
- Avalanche has seen over $1.5 billion bridged and currently has over $2 billion in TVL
State of the protocol 📰
Aavalanche. The buzz on CT this week was around Aave's launch on Avalanche and the start of Aave's cross-chain future. As indicated on the community call, the Avalanche team started a discussion and a Snapshot vote on launching Aave on Avalanche.
Outside the headlines, the @AaveAave team continued to grow and the recently launched FRAX market is starting to gain traction.
Ecosystem 🧉
Previous grant recipients were busy this week including:
- Symphony Finance launched their yield generating limit order product on Polygon
- Llama unveiled their initial treasury strategy for the Aave treasury, which utilizes Balancer to earn yield with aTokens from the reserve factor - read about the full strategy and check out a recap of the data from Our Network
- New elite level bounties from @flipsidecrypto
- @ericrhare from Omni Analytics shared a progress update on their Polygon Dune Dashboard and their Aave on R Dashboard - please share any comments or requests with them!
Elsewhere in the ecosystem, catch Stani on London Real's DeFi Leaders Series, and @farmfolio_unrolled support for tracking Aave positions
Governance ⚖️
On-chain votes:
- AIP 35: Update AMPL interest rate curve to account for over-approximation in compounded interest | Governance forum
Snapshot votes:
- Do you provide community support for Aave deployment on Avalanche? | Governance forum
- Add V2 Market assets to Polygon Market | Governance forum
Other discussions:
- Aave - Asset Management Guidelines | @llamacommunity_, @Matthew_Graham_, @accel_capital, @ahuja and @gmoney
- AAVE: Cross Chain Deployment Success / Priorities | @0x_wgmi
Mark your calendar 📆
#ETHOnline by ETH Global - September 17th to October 15th
Stani will be speaking at:
- Mainnet 2021 - September 20th to 22nd → If you're in NY, check out 'The Future of DeFi' panel on September 21st at 10:20 am on the main stage
- Wyoming Blockchain Stampede - September 21st to 26th
- Token2049 London - October 7th to 8th
- ETH Lisbon - October 22nd to 24th → now officially featuring rAAVE^2 on October 24th
Water cooler 🆒
Web3 Marketplace. Is this another project Stani has on the go? We know Andre teased a zero fee NFT marketplace last week.
Learn more and join the AGD community:
- Browse RFPs:Â https://aavegrants.org/Request-for-Proposals-160203ba5d1746daae31588924a6680a
- Chat with the community on Telegram:Â https://t.me/aavegrantsda
- Join the governance forum:Â https://governance.aave.com
- Learn more about AGD:Â https://aavegrants.org
- Subscribe to Aave News: