Aave News: First look at V3, Bored Ghosts Developing, Feb Risk Review & More

A recap of the Aave ecosystem, March 14th to 20th 2022

Mar 23, 2022

For anyone who has tried out V3, featuring: Risk 🔎, Protocol 📰, Ecosystem 🧉, Governance ⚖️ & Events 📆

Risk 🔎

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.

For more details on how Gauntlet manages market risk for Aave, please see Gauntlet’s Parameter Recommendation Methodology and Gauntlet’s Model Methodology.

February Risk Review:

Details can be found in this ARC

Gauntlet proposes adjusting six (6) total risk parameters including LTV, Liquidation Threshold, and Liquidation Bonus across five (5) Aave V2 assets. An on-chain vote was initiated on Tuesday, 3/22.

This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets. Gauntlet’s parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Parameter recommendations seek to optimize for this objective function. Our agent-based simulations use a wide array of varied input data that changes on a daily basis (including but not limited to, asset volatility, asset correlation, asset collateral usage, DEX / CEX liquidity, trading volume, expected market impact of trades, and liquidator behavior). Gauntlet’s simulations tease out complex relationships between these inputs that cannot be simply expressed as heuristics. For more details, please see Gauntlet’s Parameter Recommendation Methodology and Gauntlet’s Model Methodology.

Protocol 📰

Bored Ghosts Developing (BGD), a group of three OG Aave contributors, shared a proposal to support ecosystem development for the next 15 months - they have already started work on the conversation of next steps with the migration from LEND

There is more than $1B of stETH from Lido Finance now on V2
If you missed V3 going live last week, see an overview of the new features and the initial traction on each network

Ecosystem 🧉

Rewatch LFGrow - the virtual hackathon between Lens Protocol and ETHGlobal building the future of web3 social 🌱
Aave University Blockchain Club in Uganda shared an update on two meetups hosted in March - the next one is planned for April!