Aave News #71

Spotlight on Picnic, GHO Development Update, Q3 Financial Reports and the Largest Vote in Aave History Goes Through. Don't Remove your Proposition Power!

Oct 19, 2022

// Spotlight: Picnic (formerly DeFi Basket) 🔦

We are proud to announce Picnic 🎉, a portfolio management protocol on Polygon that allows you to invest in many DeFi protocols (including Aave) in a single transaction. Create your basket today and start earning from a variety of aTokens on Polygon including over 8% on BAL 👀

// Protocol 📰

GHO Development Update. Aave Companies shared an update on GHO as well as a technical paper. This week 0xstvn’s gave a talk on GHO at Devcon which included a look at the current stablecoin market, a deep dive into why they launched GHO and the relevant risks.
Q3 Financial Report. Llama shared their most recent Financial Reports for Aave. On top of the expected financial statements the report also includes metrics and insights into the safety module, treasury holdings, cross chain performance and a V3 payback period.

// Ecosystem 🧉

Voting is live to allow Balancer Labs to claim their stkAAVE rewards.
Gauntlet shared a report that outlines how their recommendations have generated >$3.7M of additional interest on Aave.
Aave Grants shared a deepdive on their recent September update including highlighting recent grantees: @boardroom_info, @DefiLlama, Phi, @0xTPH, @defishyxyz, @awesomeqa_xyz, @inverternetwork, @EdgeWallet, @dodao_io, & Opportunity Summit. Congrats again and welcome to the AGD fam 👻
Watch Stani talk about what could be the next big catalyst in DeFi, the role of social protocols like Lens, institutions and more in the Bellcurve podcast.

// Risk 🔎 - written by Gauntlet

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.

Gauntlet provides recommendations in the forum post, and discussions are ongoing.

Risk Parameter Updates:

Details can be found in this AIP

Gauntlet proposed adjusting 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 ⚖️ - written by Boardroom

Summary

The proposal to Adjust Aave Governance Level 2 requirements passed — with just enough votes to meet quorum. Great work by @bgdlabs to figure this one out and help get it through. They remind us not to remove proposition power from the autonomous contract until the proposal is executed (~six days from now).

Here are the latest metrics from Messari.

Proposals

Aave Improvement Proposals (AIPs):

Whitelist Balancer’s Liquidity Mining Claim (109). “Balancer DAO seeks to retrieve around 1,500 stkAAVE from several Linear Pools.”

Recently active Aave Improvement Proposals:

Adjust Aave Governance Level 2 requirements (106). 🎆 Succeeded with nearly 100% voting “for,” and is queued for execution in ~six days.
Risk Parameter Updates for Aave V2 ETH (108) succeeded with nearly 100% voting “for,” and was executed on October 14.

🗣 Now on Snapshot:

Add TRYB to Aave V3 on Avalanche Network, Isolation Mode.

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

Aave V3 Ethereum Deployment: Assets and Configurations. Following the community-approved decision to deploy a new Aave V3 Ethereum market (rather than upgrade V2), it’s “time for the community to make important choices around how to design V3 ETH’s initial market structure.”
Risk Parameter Updates for Aave V3 Avalanche: 2022-10-15. Here’s Gauntlet’s guidance, which is to adjust five parameters “to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.”
Aave v3 Polygon wMATIC Interest Rate Update. Llama proposes to update “wMATIC interest rate parameters on the Aave Polygon v3 Liquidity Pool.”

Requests for comment active this week:

Add Goldfinch FIDU as collateral to Aave V2.

In the Forums

LFGHO! An update on GHO from @AaveCompanies, including a technical paper.

Financial Report, Q3 2022 from @Llamaxyz.

Mango Markets and liquidity attack risk. @pauljlei says Gauntlet is analyzing risk to Aave v2 and v3 assets.

New delegate platform, from @lbsblockchain, a “student and professional society at the London Business School.” Check it out.

FEI security report. BGD Labs observed a problem when the FEI reserve factor was set to 100% (through a recent proposal, as part of the planned deprecation of the FEI market). Proposed solution included.

Network evaluation. BGD Labs provides a clear framework for the technical evaluation of networks seeking a deployment of Aave v3.

Karma forum plugin. @mmurthy explains how the Discourse plugin could help “streamline” delegate activity.