This is an archive of our post on Aave governance forum. Read the full thread here.

August 2024

Overview

LlamaRisk presents our August 2024 monthly update, summarizing key activities and outlining upcoming priorities.

Highlights

• Recommendations:

  • Etherfi/Stablecoin Aave v3 Instance

  • Deploy an Ethena Aave v3 Instance

  • Remove FRAX from isolation mode and onboard sFRAX

  • Onboard artMETIS to Aave V3 on Metis Market

  • Onboard osGNO to Aave v3 Gnosis

  • Onboard ezETH to Aave V3 Lido Instance

  • Onboard steakLRT to Aave v3 Lido Instance

  • Increase Community Preference For Supply Cap Limits

• Inputs and reviews:

  • Umbrella Safety Module and AAVEnomics update

  • Revised parameters to onboard rsETH to Aave V3 Ethereum

  • Preliminary findings on WBTC custody transition, signature of NDA with BitGo, and clarifications

  • GNO isolation mode status

  • Decrease Supply and Borrow Caps on Aave V3

• Research and analysis:

  • Published a research piece on AAVE Interest Rate Model and the TradFi Symbiosis

  • Finalizing several research projects, including:

    • ChainLink CCIP and its use in Aave

    • Tradeoffs of using market vs. exchange rates and usage of CAPO framework

    • Framework for loyalty points programs

• Meetings and feedback:

  • Met with several delegates to gather feedback on our work

Upcoming Focus Areas

Our main priority is to conclude the assessment and make recommendations for the WBTC custody changes. The proposed BUILD GSM integration with BlackRock is also a key area of interest; we are exploring the legal implications and opportunities for integrating RWAs.

Other areas of research include:

• GHO user analytics: researching the user profile of GHO to gain insights into adoption trends, collateral usage, user portfolios, and cross-protocol activity

• Tooling for historical slippage at different swap sizes

• Research on the safe level of asset-specific capitalization for Umbrella

• Slashing simulation, which we intend to open-source

• Monitor bot for RWA redemption buffer

• Further research on supply cap limits (l2 concentration) and usage of cross-chain liquidity for liquidations

We welcome community feedback and suggestions. Please share any questions, ideas, or areas where you would like increased focus from the LlamaRisk team.