Aave News: DeFIRE Spotlight, OFAC Decision, DeFi Diaries, NFT-backed Loans & More

A recap of the Aave ecosystem, August 8th to 14th 2022

Aug 16, 2022

Spotlight: DeFIRE 🔦

DeFIRE is a wealth optimisation protocol that allows investors to build hedged crypto portfolios composed from low-touch containers that lower the standard deviation on volatile assets to achieve market neutral returns with a fraction of the effort.

DeFIRE hopes to route a significant portion of its TVL through AAVE, and its ability to accept cross-chain deposits means that as DeFIRE expands to more chains, AAVE will get exposure to the capital previously siloed on those chains. Follow DeFIRE on Twitter and join their Discord.

Protocol 📰

Aave Companies proposes that the Aave DAO should commit to selecting the Ethereum Mainnet running under the Proof of Stake consensus over any Ethereum fork running an alternative consensus.
After the OFAC’s decision on Tornado Cash, Aave Companies integrated an API on the Aave IPFS frontend to comply with the sanctions and mitigate risk. The protocol remains open and committed to fighting for open & fair finance.
Messari shared a deep dive into the state of Aave in Q2 2022. Explore key financial metrics, KPIs, new products and more.

Ecosystem 🧉

Watch the premiere of DeFi Diaries breaking down the Aave protocol. DeFi Diaries reviews different DeFi protocols, provides tutorials on how to use them, and explains how they could be a healthier alternative to financial instruments that are offered today.
Nevermind announced their integration with Aave which allows marketplaces to offer NFT-backed loans. Learn what problems it solves, how it leverages credit delegations to increase capital efficiency and how it works under the hood.

Certora shared their July 2022 Continuous Formal Verification Report on the governance forum.

Risk 🔎

Asset Listing Framework:

Details can be found in this Snapshot

This Snapshot vote establishes community consensus on whether:

New assets are not required to be listed with an initial LTV of 0%, or
New assets are required to be listed with an initial LTV of 0%.

The tradeoffs for these two options are explained in further detail in the governance forum post.

Risk Parameter Updates:

Details can be found in this AIP

AIP-92 has been passed and implemented. Gauntlet proposed adjusting seven (7) total risk parameters, including Liquidation Threshold and Liquidation Bonus across four (4) Aave V2 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. This set of changes lowered liquidation threshold for CRV and ENJ. The community has aligned on a Risk Off Framework regarding lowering liquidation thresholds.