An archive of our post on Aave Governance forum, in the context of our scope of Risk service provider.

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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.