Aave News #74

Aave Grants Update & New Grantees, JP Morgan Using Aave, and Staked aTokens. Plus, Risk update from Gauntlet, Governance Update from Boardroom, and more.

Nov 10, 2022

// Spotlight: Aave Grants: October Update 🔦

Check out the October Aave Grants update on the governance forum including new grant recipients, an events summary, the upcoming renewal post and more. Big congrats to all the grant recipients: @BlockchainEdu @llama @ihelp_defi @TuffDAO @ithil_protocol @0xmercle @Risk_DAO @raincards @clutch_wallet @RioCryptoHub @Identialxyz @polarpunklabs @DaoLens @rocifi and more. Look out for an official announcement thread later this week!

// Protocol 📰

JP Morgan executed a live DeFi transaction using a modified version of Aave Arc on Polygon, a world first and a milestone for the adoption of DeFi and public blockchains by institutions.

Ty Lobban @TyLobban

WORLD! J.P. Morgan has executed its 1st *LIVE* trade on public blockchain using DeFi, Tokenized Deposits & Verifiable Credentials, part of @MAS_sg Project Guardian 🙌🚀🔥mas.gov.sg/news/media-rel… Many world 1sts here, & since this is public ⛓ here’s a transparent🧵on what we did:

After a successful Snapshot vote to develop Staked aTokens, Balancer LP tokens will be coming to the Aave Protocol. Checkout Messari’s Governor Note on Staked aTokens or the initial governance post to learn more.

// Ecosystem 🧉

Listen to Stani talk about DeFi and Lens on the Crypto 101 Podcast

Keep an eye on recent grantee DeFire who makes it easy invest in DeFi with their wealth optimization protocol.

// Risk 🔎 - written by GauntletAave 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 forum post

Gauntlet proposed adjusting parameters in the Aave V3 Avalanche market. These recommendations have been implemented.

// Governance ⚖️ - written by Boardroom

Summary

It’s been especially busy with requests for comment — lots of ideas being put forward. See below.

And: the latest metrics from Messari.

/ Proposals

👻 Aave Improvement Proposals:

Chaos Labs Risk Platform Proposal (113). Passed with nearly 100% voting “YAE,” and is queued for execution.

⚡️ Now on Snapshot:

ERC4626 Strategies as Productive Collateral. Llama proposes the introduction of new collateral type that will allow “users to earn the rewards of other protocols by depositing into Aave v3 Reserves.”

⚡️ Recently on Snapshot:

Staked ATokens, A New Aave Primitive Exploring Vote-Escrow Economies was approved by nearly 100% of voters on November 5.
Deploy Aave V3 to zkSync 2.0 Testnet was approved by nearly 100% of voters on November 2.
Security and Agility of Aave Smart Contracts via Continuous Formal Verification was approved by nearly 100% of voters on November 3.

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

Gauntlet <> Aave Renewal. A proposal to renew the twelve-month engagement, which expires in December.
Risk Parameter Updates for Aave V2 ETH and Aave Arc (Fireblocks) 2022-11-03. Gauntlet recommends no parameter changes this week.
ETH Interest Rate Curve Update. A proposal “to amend ETH interest rate parameters on the Aave Ethereum v2 and Ethereum v3 (when deployed) Liquidity Pools.”
LDO Emission_Admin for Polygon V3 Liquidity Pool. @llamaxyz “proposes amending the Emission_Admin address to enable the distribution of LDO rewards.”
BAL Interest Rate Curve Update. Llama proposes “to amend BAL interest rate parameters and enable borrowing of BAL on the Aave Ethereum v2 Liquidity Pool.” Be sure to follow the discussion as the proposal evolves.
Add OP as Collateral to Aave V3. Gauntlet is analyzing.
Add Support for BADGER on Aave V3. Discussion continues.
Aave V3 Delployment: Assets and Configurations. A new comment Index Coop’s DeFi Pulse Index, by @funkmasterflex.
Add Support for cbETH. Some more comments in the discussion.
Harmony One. Should Aave participate in the recovery process?

/ In the Forums

Aave Grants DAO presents the October update, courtesy of @0xmigi.

Gauntlet analyzes market risks of listing LP tokens as collateral (see here and here).

Here’s the update for month one, from Llama.

Delegate updates from @Kene_StableNode, @PennBlockchain, and @lbsblockchain, explaining votes.

Should we deploy Aave V3 on BNB chain?

For discussion, from @monetsupply: adjust stablecoin rate parameters on Aave V2 Ethereum.

/ On Twitter

Voting block delay. A reminder from @bgdlabs that voting opens 7200 blocks after proposal creation. (This from the changes coming from proposal # 106.)

/ In Discord

Where should I have AAVE to participate in governance?