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Gauntlet has suggested no parameter changes for Aave V2 ETH and Aave Arc Fireblocks market, aligning with the Moderate risk level chosen by the Aave community. The Aave community continues to manage risk effectively, demonstrated by the launch of the Aave Arc Risk Dashboard, the operation of the Insolvency Refund vault, and a strong credit score for a key borrower.
This week, Gauntlet has recommended no parameter changes for the Aave V2 ETH and Aave Arc Fireblocks market. This decision is in line with the Moderate risk level chosen by the Aave community and is part of Gauntlet's regular parameter recommendations. These recommendations are driven by an optimization function that balances insolvencies, liquidations, and borrow usage. The community has agreed on a Risk Off Framework for lowering liquidation thresholds. In addition, Gauntlet has launched the Aave Arc Risk Dashboard. As there are no proposed parameter changes, no governance proposal will be created for this forum post1.
In other news, Pauljlei announced that Gauntlet has initiated an insolvency refund for Aave. This includes a portion of their payment stream that can be reclaimed in the event of insolvencies due to market risk. Since the last recommendation, Aave has not experienced any new insolvencies. Gauntlet's Insolvency Refund vault remains active1.
In a separate analysis, Ccb_roci examined the borrower 0x7a...5428. According to RociFi's credit risk model, this borrower has a strong credit score of 3 out of 10, indicating a risk-averse borrower unlikely to allow their loans to be liquidated, even under unexpected market conditions. The borrower's historical activity across all of DeFi, not just Aave, includes 195 total borrows, a wallet age of 822 days, $112M in total debt repaid, and zero liquidations. The borrower's strong credit score and current health factor of 1.85 suggest a lower risk profile2.
In conclusion, the Aave community continues to manage risk effectively, with no new insolvencies reported and a strong credit score for a key borrower. The launch of the Aave Arc Risk Dashboard and the ongoing operation of the Insolvency Refund vault further demonstrate the community's commitment to managing risk and maintaining stability.
Posted a year ago
Last reply a year ago
Summary updated 2 months ago
Last updated 08/12 04:39