Aave News #70

Ethereum v3 deployment, vote to change the level 2 governance requirements and AGD in Bogota. Plus, Risk updates from Gauntlet and governance updates from Boardroom.

Oct 11, 2022

// Protocol 📰

Learn about the current state of delegation at Aave including where to view platforms, current delegates and pro tips to level up your delegate platform
Llama's 12 month proposed engagement passed governance with near unanimous support.
The autonomous proposal to change the level 2 voting requirements has been queued - vote now if you are eligible in what would be the largest vote in Aave history. Check out the full report from bgdlabs and participate.
Aave is one of the first protocols to join Polygon's zkEVM testnet.

// Ecosystem 🧉

If you are in Bogota, be sure to swing by the Aave booth (or truck 👀) to say hi to Aave fam and pick up some Aave swag.

// Risk 🔎

In case you haven’t seen it, check out the AAVE V2 Risk Dashboard and Analytics Dashboard developed by Gauntlet. Gauntlet has also launched the AAVE Arc Risk Dashboard. 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.

Aave V3 Ethereum Deployment:

Details can be found here

Following the community’s decision to deploy a new Aave V3 Ethereum, it is now time for the community to make important choices about how to design V3 ETH’s initial market structure.

Given the sheer complexity and scope of the decisions that the community is faced with, Gauntlet has broken down the decisions into several questions to help organize community discussion to find consensus:

Which assets should be initially included in the standard V3 Ethereum market?
Which V3 modes should be “active,” and how should those modes be structured?
What should the parameters be for initial V3 ETH deployment?

Gauntlet provides recommendations in the forum post to kickstart community discussion.

Risk Parameter Updates:

Details can be found in this ARC

An AIP will be published on Tuesday, October 11th. Gauntlet proposes to adjust five (5) total risk parameters, including Liquidation Threshold, Loan To Value, and Liquidation Bonus, across two (2) Aave V2 ETH assets.

This batch update of risk parameters aligned with the Moderate risk level chosen by the Aave community. These parameter updates were a continuation of Gauntlet’s regular parameter recommendations. Gauntlet’s simulation engine has ingested the latest market data to recalibrate parameters for the Aave protocol.

// Governance ⚖️ → Now written by Boardroom!

The critical Autonomous Proposal accumulated enough (320K AAVE) proposition power to execute, which meant that two proposals were initiated: The “vote boost” proposal (which succeeded), and the proposal to adjust Level 2 requirements (which is active). Read all about the process and its importance to Aave governance here.

🗣 The second proposal needs to meet high quorum and differential thresholds. So go vote.

Process note: The most recent, always excellent Aave News is out. Going forward, we at Boardroom will be contributing to the governance news covered there. (We’ll still post here, just to make sure all bases are covered.)

Proposals

🗣 Active Aave Improvement Proposals (AIPs):

Adjust Aave Governance Level 2 requirements (106).

Recently passed / failed Aave Improvement Proposals:

Use AAVE Ecosystem Reserve to vote YES on proposal to adjust Level 2 Governance requirements (107). This passed with nearly 100% voting “YAE.”
Ethereum v2 Reserve Factor - aFEI Holding Update (105) passed and was executed on October 9.
Llama <> Aave (104) passed and was executed on October 9.

On Snapshot:

Risk Parameter Updates for Aave V2: 2022-10-06 is live until October 11, 9PM GMT. See full description here.
Aave v3 Ethereum. Approval of path forward is live until October 11, 10AM GMT. Discussion here.
Chaos Labs <> Aave. This updated proposal has passed with nearly 100% voting “yes.” Discussion continues.

🗣 Provide your feedback on these new Aave Requests for Comment (ARC):

Security and Agility of Aave Smart Contracts via Continuous Formal Verification. @shelly from Certora extends this proposal from a previous one, requesting a year-long commitment from Aave DAO at $2.7m, with an additional $400k suggested for fellowships and community grants for security engineers from the Aave community.

Ongoing requests for comment:

Add Goldfinch FIDU as collateral to Aave V2.
Improving wMATIC Parameters on Aave v3 Polygon.
Launch Aave V3 on Metis.
Add OP as collateral to Aave v3 (technical parameters update from Optimism’s @ben-chain).
Add new KNC to Aave v2 and v3.
Price Manipulation Implications for Aave V2: September 2022