Liquidation Health Data with Defishy, Starknet Launch, and Staked aTokens - a proposal for a new type of collateral from Aave Companies.

For anyone who is subscribed to Aave Grants on Mirror, including: Spotlight 🔦 | Protocol 📰 | Ecosystem 🧉 | Risk 🔎 | Governance ⚖️ | Events 📆 | Hey Anon 👻

// Spotlight: Defishy 🔦

Defishy’s liquidation dashboard is now live for Aave, including historical data. Users can monitor current liquidation health metrics as well as dig into past positions. This democratizes access to liquidation health data and helps the Aave community to stay informed 🐟 🤝 👻

// Protocol 📰

• bgdlabs shared an update on the status of the Aave <> Starknet Phase I - look for the launch soon as the Snapshot vote seems overwhelming in favour at the time of writing. Read more in Governance ⚖️

• Aave Companies shared a proposal for a new type of collateral: staked aTokens. This would allow Aave to participate in ve-economies like Balancer and Curve. Read more in Governance ⚖️ including a similar proposal from Llama. The proposal is queued to go live on Snapshot tomorrow.

// Ecosystem 🧉

• If you missed the October community call, catch up with a summary on each speaker.

• Aave, along with Aavegotchi, have the top voter turn out among active DAOs according to @DeepDAO_io. Nicely done Aave fam!

• Read @lemiscate takes on GHO, Lens, what to be bullish on during the next cycle and more in the alpha please newsletter which, as the name suggests, is packed with alpha. Overview from @mike1third if you want the quick version.

• Thread from @Stablecoinswtf on GHO including breaking down facilitators and the interest rate.

• 🚨🤫 Early grant announcement: TuffDAO has received a grant that will primarily go towards a contract audit. Their tVBT contracts are backed by a portfolio of Aave lending pool positions and convert trading volume into money. Look out for more grant announcements coming soon!

// Risk 🔎 - written by Gauntlet

In case you haven’t seen it, check out the AAVE V2 Risk Dashboard and Analytics Dashboard developed by Gauntlet. Gauntlet has also launched the AAVE Arc Risk Dashboard. 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.

Aave V3 Ethereum Deployment:

Details can be found here

Following the community’s decision to deploy a new Aave V3 Ethereum, it is now time for the community to make important choices about how to design V3 ETH’s initial market structure.

Gauntlet provides recommendations in the forum post, and discussions are ongoing.

// Governance ⚖️ - written by Boardroom

/ Proposals

⚡️ Now on Snapshot:

• Deploy Aave V3 to zkSync 2.0 Testnet. FranklinDAO and Matter Labs jointly propose deployment of Aave V3 to zkSync 2.0’s testnet, saying that it would support “Aave’s multichain mission and expand cross-chain experiences.” The move could bring new users to Aave, and may increase activity on Aave as well since transaction costs are significantly lower on the rollup. When mainnet deployment becomes possible (and certain other criteria are met), another Snapshot will be posted. Forum discussion can be found here.

• Security and Agility of Aave Smart Contracts via Continuous Formal Verification. Certora extends this proposal from a previous one, requesting a year-long commitment from Aave DAO at $2.7m. The additional $400k suggested for fellowships and community grants for security engineers has been pulled from the request. See the full discussion here.

⚡️ Recently on Snapshot

• Add Login With Unstoppable as an option to the wallet connect dialog of the Aave app. Unstoppable Domains, which issues human-readable blockchain domains, proposes to add an Unstoppable login to the Aave app — suggesting that this will bring more users to the protocol. Just over 55% voted “Nay.”

🗣 Provide your feedback on these Aave Requests for Comment (ARCs):

• [ARC] Add Support for cbETH. This proposal seeks to add cbETH (Coinbase Wrapped Staked ETH) to Aave on Ethereum. It presents cases for deployment on V2 (LTV 0%) or V3 (parameters tbd), with the community to decide via Snapshot.

• ARC: Staked ATokens, A New Aave Primitive Exploring Vote-Escrow Economies. @AaveCompanies seeks community feedback on creating this new primitive: Adopting it, “Aave DAO Treasury could generate revenue from staking rewards…[and] allow the Aave DAO Treasury to participate in the veToken economy and attract additional users.”

• [ARC] - ERC4626 Strategies as Productive Collateral. This proposal, from @Llamaxyz and @MatthewGraham, is similar (and complementary?) to the one from AaveCompanies above: The proposal involves “the introduction of a new productive collateral type that allows users to earn the rewards of other protocols by depositing into Aave v3 Reserves,” while generating additional revenue for the Aave DAO.

• [ARC] - Add support for BADGER on Aave V3. This proposal requests that the BADGER token be onboarded onto Aave V3 Ethereum. Badger DAO is “focused on building the products and infrastructure necessary to accelerate the growth of Bitcoin in Decentralized Finance across multiple blockchains.”

• [ARC] - Integrate Coin98 Wallet into the Aave App. A proposal to integrate with this non-custodial wallet, making Aave available on the Coin98 mobile app.

/ In the Forums

• Aave <> Starknet Phase 1 project has been completed, says @eboado, who gives a full recap of what has been done.

• Envoy proposal alerter. @lbsblockchain has created a tool to track proposals.

• Karma forum plugin. Is the community interested in this open source plugin to “streamline delegate activity” and surface governance info?

• Discursive health of DAOs. Here’s a brief research survey to complete, about governance.

• Interest rate parameters. Gauntlet is preparing to support interest rate parameters, and initiates discussion of curve mechanics in this thread.

• GHO development cost. Matthew Graham asks AaveCompanies if they are planning to request retroactive payment for developing GHO — so that a proper analysis of the DAOs runway can be conducted. In future, he asks the team to detail “scope of work, timeline and KPIs” for major projects.

• Messari now covers Aave in their Governor product, as announced by @raho.

/ In Discord

“How do you think anon forums would impact the quality of forum discussions?”

Quick Gov Links: Governance FAQ | Governance Docs | Discord Governance Channel | Snapshot | AIPs | Aave on Boardroom

// Events 📆

What events should Aave Grants sponsor for the rest of the year and into Q1 and Q2? DM Aave Grants with suggestions.

// Hey Anon 👻

Did you see rAAVE in the Economist?

s/o to @thekindeagle for the cover image.