Aave News: Say Hi and Get Swag at Permissionless, Grants Renewed, Minke AMA, Vote to Freeze UST, & More 🚀👻
A recap of the Aave ecosystem, May 9th to May 15th
For anyone who appreciates Aave’s risk management, featuring: Spotlight 🔦 | Risk 🔎 | Protocol 📰 | Ecosystem 🧉 | Governance ⚖️ | Events 📆 | Hey Anon 👻
Spotlight: Permissionless 🔦
If you’re at Permissionless this week, stop by the Aave Grants DAO booth to meet some of the Aave fam, pick up some swag, and jam about Aave V3, Aave Arc, or Aave Grants! We would love to meet you. Plus don’t miss Stani on the ‘DeFi State of the Union’ panel 👀
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
Due to market conditions around UST and related oracle unreliability, Gauntlet proposes freezing UST.
Due to current uncertainty around the stETH peg, Gauntlet also proposes increasing stETH liquidation threshold to 81% and decreasing stETH LTV to 69%. Currently, stETH liquidation threshold is 75% and stETH LTV is 73%.
This will allow borrowers using stETH as collateral with more buffer in case stETH continues to depeg, and thus decrease the chances of liquidation cascades that lead to insolvency on the Aave platform. stETH LTV will also be decreased, so new positions will not be able to take on riskier positions using stETH as collateral. Our analysis indicates that an 81% liquidation threshold for stETH should allow for the protocol to withstand an additional 10% depeg from stETH and ETH price. Gauntlet's simulations of the Aave protocol indicated that a decrease in LTV to between 66-69% and an increase in liquidation threshold to 81-82% could significantly decrease liquidation volume as well as total insolvencies while minimally decreasing capital efficiency.
On-chain votes to renew Aave Grants DAO, update risk parameters by Gauntlet, and update Aave Arc parameters by Governance House all passed and have been executed 👻✅
After a successful Snapshot vote, @ConnextNetwork will be integrating Aave Portals as part of their Amarok upgrade, making them the first application to receive a credit line on multiple chains 💪
Llama shared their March Treasury Report 🦙
Rewatch 'Developers Guide to the Aave Protocol’ by big 🧠 dev @DeFiSpartan covering new features in V3, integrating the Aave protocol into your front end, and tools to super charge your development experience 👻🏗🚀
Despite the market volatility, Aave V2 saw minimal insolvencies and liquidations are being healthily absorbed by the market - thanks to Gauntlet for the analysis and keeping a close eye on the protocol!
Catch a replay of our AMA with @vancityreyes from grant receivooor Minke - learn what Minke is and how they make it easy to onboard people to crypto, how you can win $5k in AAVE, pro tips for surviving a bear market and more 🌊
@IncrementHQ is hiring for frontend devs - apply or share the opportunity with someone who might be interested 🧑💻
Freezing UST and Updating stETH Parameters | Governance discussion | See more in Risk 🔎 | Governance Discussion | 🗳 Vote until May 17th
Aave Arc Market - Update Asset Listing Risk Parameters | Governance discussion | ✅
Risk Parameter Updates 2022-05-05 | Governance discussion | ❌ Cancelled by Gauntlet
ARC: Whitelist Connext for V3 Portals | Governance discussion | ✅
ARC: Enable sUSD as Collateral on AAVE V3 on Optimism with a 10 million sUSD Supply cap | Governance discussion | ✅
Should nine (9) total risk parameters across five (5) Aave V2 assets be updated? | ✅
Other discussions from the forum:
ARC: Add support for StakeWise’s permissioned staked ETH token (psETH) to Aave Arc
HackMoney - May 6 - 27
Get Nauti at Permissionless - May 16
Permissionless - May 17 - 19
Consensus - June 9 - 12
DAO NYC - June 22
EthCC - July 19 -22
Hey Anon 👻
It’s very awesome anon.