Aave News: AHH the Aave Ecosystem is Shippppping: AGD Renewal, Newtverse, RWAMarket, and More 🦎
A recap of the Aave ecosystem, December 13th to 19th 2021
For anyone who is feeling newt, featuring coverage on Aave Weekly ⚡️ , Aave Grants DAO 🏗 , Risk 🔎, State of the protocol 📰 , Ecosystem 🧉 , Governance ⚖️, Upcoming events 📆 , and Water cooler 🆒
Aave Weekly ⚡️
The Aave Weekly Newsletter brings readers insights on protocol liquidity, income and other performance metrics.
The Aave Protocol closes week 51 of 2021 with $25.0 billion of liquidity:
44.6% Utilisation, generating $9.7m of estimated interest for depositors
$138m of Flash Loan volume, generating $123k of fees for depositors
$19.0m liquidated, generating $1.3m of fees to liquidators
$865k for the ecosystem collectors now holding $37.6m
$12.0m generated by the protocol this week
With an additional $2.0m $StkAAVE, $3.7m $WMATIC & $2.6m $WAVAX distributed
*at the weekly close price
Aave Grants DAO 🏗
The proposal to renew Aave Grants passed an on-chain vote with unanimous support from the community. This increases funding to $2m for the next quarter to continue supporting teams, events, and other sponsorships that strengthen the Aave ecosystem. Thank you to Index Coop, Flipside Crypto, and everyone else in the community who voted YAE and are in favour of more Aave Grants 👻
In case you haven’t seen it, check out the Aave Risk Dashboard by Gauntlet at gov.gauntlet.network/aave. The Gauntlet team is particularly keen on iterating on this dashboard for the community and would love feedback via this Google Form.
Risk Parameter Updates:
Details can be found in this ARC
This week's set of parameter updates includes adjusting nine (9) total risk parameters across seven (7) Aave V2 assets including LTV, Liquidation Threshold, and Liquidation Bonus. In addition, Gauntlet proposes freezing the KNCL reserve to speed up the KNC migration as well as eliminating the risk of keeping a less liquid deprecated asset on the platform.
The recent market downturn on the weekend of December 4th led to the most liquidations on both centralized exchanges and in liquidity protocols in the recent past. Although volatility for assets is slightly higher, the abundance of liquidity and active market participants is a positive sign for the health of Aave. Multiple liquidations of over $400,000 USD occurred in quick succession. This shows ample liquidity for liquidators even in times of high network congestion. Although some assets currently have higher volatility, Gauntlet’s analysis shows that it is safe to increase borrowing parameters and decrease liquidation bonus values. Gauntlet’s simulations study price drops and network congestion more extreme than was seen last week, and slippage and liquidity considerations have improved.
State of the protocol 📰
The Aave core team introduced Newt, the experimental arm of Aave dedicated to building and innovating in total transparency. Find out more at wearenewt.xyz 🧪🥽🦎
The RWAMarket built on Aave & Centrifuge is launching very soon - users can now start onboarding and completing the KYC process so they are ready for launch. Join them from a Holiday AMA tomorrow to learn more if you have any questions
Aave Arc has it’s first liquidity provider! Anubi Digital made the genesis deposit into the ETH market 🥳
Users can experience increased yields, greater capital efficiency, and deeper liquidity with Aave Boosted Pools from Balancer Labs
Conversations continued around ‘Business License’ emerging as the top option from the Snapshot vote to determine which license to release V3 under, including an explanation from @yeoujie on Definance’s vote
OpenZeppelin shared the audit results for Tally’s Safeguard - a governance lego that increases transparency and accountability within DAOs
Tally is also hiring “for a Developer Advocate to help lead the faithful to the DAO Land!” - hit up Dennison if this is you 🧑💻
Solace’s “A Letter to Santa” writing contest is open until December 21st - share your wish for DeFi and you could win 800 $SOLACE!
JellyFi shared a Year in Review looking back at 2021
DeFiCon took place this week - stay tuned to see recordings from the conference including Stani talking about DeFi for Institutional "Degens”
Should 9 total risk parameters across 7 Aave V2 assets be adjusted? | Governance discussion | 🗳 Voting is live until December 20th at 5PM EST | Read more in Risk 🔎 and look out for a corresponding AIP this week
Certora Continuous Formal Verification for Governance and Aave Community | Governance discussion | The temperature check received 80.2% (90.2k AAVE) YES votes and 19.8% (22.3k AAVE) NO votes
Upcoming Events 📆
ETHDenver - February 11 - 20, 2022
Water cooler 🆒
Moving big value cross-chain? Child’s play once v3 is live
bag3Lb0y @bag3Lb0y@ercwl Suzhu mentioned in a recent uncommon core that bridges exist for Arbitrum but moving actual size is difficult. He had someone looking to move 3k Eth and it just wasn’t going to happen. Maybe things will change if there is more adoption.