Aave News: Open Roles at Aave Grants, HackMoney, & Stani is Back

A recap of the Aave ecosystem, April 25th to May 1st

May 3, 2022

Spotlight: HackMoney 🔦

Want to hack the future of finance? Join us May 6th-27th for HackMoney where you can experiment with the cutting-edge of decentralized technology alongside developers and creatives from every corner of the globe. We're teaming up with ETHGlobal to build the ultimate Web3 hackathon experience, and we want you to be a part of it! Apply now, hacker applications close May 4th!

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.

Risk Parameter Updates:

Details can be found in this AIP

A proposal to adjust five (5) total risk parameters across four (4) Aave V2 assets has been passed and executed.

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. Gauntlet’s 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). These simulations tease out complex relationships between these inputs that cannot be simply expressed as heuristics.

This set of parameter recommendations increases the Liquidation Threshold for UNI while also increasing its Liquidation Bonus. This is an example of a risk trade-off that Gauntlet’s simulation engine optimizes for risk and revenue.

Protocol 📰

The on-chain vote to add FRAX to Aave V3 is on track to pass - check out a 🧵for how emode can be powerful and what might happen if $UST was added to V3 after $FRAX

Ecosystem 🧉

Aave Grants is looking to hire an Event Coordinator, Marketing Manager, & Reviewer (x3) to help bring Aave Grants to the next level as we continue growing a thriving ecosystem of builders - apply now!
Watch a replay of a panel from Metis Fest featuring @lemiscate discussing Aave V3 and cross-chain interoperability
Certora hosted their ‘Understanding the Certora Prover’ workshop on how to formally verify Aave V3 - check out a replay or more resources to help you get started