Aave News #76
The Bad Debt, the Action the Community is Taking and other Updates from the Aave-verse. Plus, an Aave Grants Retrospective.
For all the Aave contributors, including: Spotlight 🔦 | Protocol 📰 | Ecosystem 🧉 | Risk 🔎 | Governance ⚖️ | Events 📆 | Hey Anon 👻
// Spotlight: Aave Grants Retrospective 🔦
Sov takes a deep dive into the history, structure, and effectiveness of Aave Grants. Read the full article for insights from the early days of grants in the Aave ecosystem to what metrics the program tracks and how readers can get involved.
// Protocol 📰
After an unsuccessful attempt to squeeze the CRV market, the Aave protocol has accrued ~$1.6M in bad debt. Multiple discussions are underway in the governance forum on the best path forward to limit further risk and make the CRV market whole. We are maintaining a thread with ongoing updates as they are shared. Be sure to check out Risk 🔎 for the latest updates from Gauntlet and Boardroom’s Governance update next week which will cover the result of all the votes and any new proposals. Big shout out to Aave Grant recipients Block Analitica and Risk DAO for making dashboards that allowed anyone in the community to keep up with the protocol’s health in real time.
An update on Aave V3 casually appeared on the governance forum while all the above was taking place- tl;dr SOON 👻
// Ecosystem 🧉
The Defiant breaks down more details about the recent DeFi trade JP Morgan made using a modified version of the Aave Poloygon Pool contract. Learn more in the full podcast - an episode sponsored by Aave Grants!
Thanks to Aave Grants, Aave will be participating in an initiative with ConsenSys and other key players from across industries to accelerate solutions to reduce greenhouse gasses.
Mero, an OG Aave Grantee, has just launched Actions which support collateral top-up and liquidation protection for Aave. Learn more about Actions and how they work with Aave.
A new treasury dashboard was shared by veddar - it shows the balances on each chain, the amount locked in streams to service providers and amounts approved for withdrawal.
See the Aave Weekly Report from Messari covering November 14th to 20th.
// Risk 🔎 - written by Gauntlet
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.
Risk Parameter Proposals:
Details can be found here
Gauntlet has put forward 6 more proposals to de-risk assets across V2 and V3 markets. These are a continuation of Gauntlet’s proposals over the last several weeks, including de-risking V2 ETH, de-risking Aave Polygon markets, freezing REN, freezing CVX, and freezing BAL.
Gauntlet’s current proposals recommend freezing assets on V2 markets and inserting borrow caps on V3 AVAX. Details of the proposal rationale can be found here. The proposals currently live for voting are AIP 120, 121, 122, 123, 124, and Snapshot vote
// Governance ⚖️ - written by Boardroom
/ Proposals
👻 Aave Improvement Proposals:
Risk Parameter Updates for Aave V2 ETH Market (2022-11-13)(119). This proposal passed with 100% voting “YAE” and was executed on November 18.
Risk Parameter Updates for Aave V2 ETH Market (2022-11-13) (118). This proposal passed with 100% voting “YAE” and was executed on November 18.
Risk Parameter Updates for Aave V2 ETH Market (2022-11-12) (117). This proposal passed with 100% voting “YAE” and was executed on November 17.
Add OP as Collateral to Aave V3 (116). This proposal received 74% “NAY” votes and failed on November 14. (See discussion here for why.)
⚡️ Now on Snapshot:
Gauntlet <> Aave Renewal. A proposal to renew the twelve-month engagement, which expires in December.
[ARC] ETH Interest Rate Curve Update. @Llamaxyz here proposes to “amend” the interest rate curves on Aave V2 Ethereum and Aave V3 Etheerum (which will soon be deployed).
[ARC] SD Emission_Admin for Polygon v3 Liquidity Pool. Llama proposes “assigning the SD Emission_Admin role on the Aave v3 Polygon Liquidity Pool to a Gnosis Safe controlled by the Stader Labs.”
[ARC] LDO Emission_Admin for Polygon v3 Liquidity Pool. Llama proposes “amending the Emission_Admin address to enable the distribution of LDO rewards.”
Strategy on sunset of Aave v1. Since Aave V2 and V3 are already in existence, BGD Labs here asks for community feedback on how best to sunset Aave V1 (Ethereum and AMM).
Aave V3 Deployment: Assets and Configurations. Gauntlet presents a table of options.
⚡️ Recently on Snapshot
[ARC] Risk Parameter Updates for Aave V2 ETH 2022-11-17. This proposal sought to adjust two parameters (liquidation threshold, loan to value) of REN. It passed on November 21 with 99% voting “YAE.”
🗣 Provide your feedback on these active Aave Requests for Comment (ARCs):
[ARC] Integrate Coinbase Pay into the Aave app. This proposal from @AndrewA of Coinbase Cloud would “allow Aave users to utilize their saved Coinbase payment methods and crypto balances to quickly add crypto to their self custody wallets linked to Aave.”
[ARC] Uniswap V3 NFT as Collateral for minting GHO. This is a proposal from @harshpandey for “a GHO Facilitator which accepts Uniswap V3 NFT (LP positions) as collateral and permits minting and burning GHO tokens when borrowing/repaying and getting liquidated.”
[ARC] Discussion: V2 → V3 Migration & V2 Deprecation Plan. This proposal from @oneski22 “presents the community with the opportunity to accelerate the migration of capital from several of the legacy V2 markets to the newer, more secure V3 markets.”
[ARC] Implementing a GHO Backstop for Aave. Discussion continues.
/ In the Forums
Delegate platform updates from FranklinDAO and @lbsblockchain.
Certora post continuous formal verification report for October.
/ In Discord
Ever surprised by proposals popping up at unexpected times? Get notifications from the #governance channel bot, which tracks both proposal submissions and governance posts in the forum.
Quick Gov Links: Governance FAQ | Governance Docs | Discord Governance Channel | Snapshot | AIPs | Aave on Boardroom
// Events 📆
If you could only go to one event in 2023, which event would it be? DM us on Twitter or Lens 🌿
// Hey Anon 👻
This is why we DeFi.
