ARC: Proposal to Add MLN as a Reserve Asset

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The proposal to add $MLN as a reserve asset to Aave, aimed at strengthening ties between Enzyme and Aave communities, received positive feedback, but concerns were raised about the low maturity of MLN's smart contracts. The community agreed to consider the risk analysis and re-evaluate the risk parameters after the release of Aave v2.5.

The discussion primarily focused on the proposal by Son_of_Ishtar to add $MLN as a reserve asset to Aave, a move aimed at strengthening the bond between the Enzyme and Aave communities. Enzyme, previously known as Melon Protocol, is a decentralized asset management infrastructure built on Ethereum. The proposal was backed by Enzyme's co-founder, Mona El Isa, and the core team, citing the long trading record, liquidity, and high degree of token distribution of $MLN as reasons for its potential as high-quality collateral.

The community showed a positive response to the proposal, with Deepcryptodive and IDecentralized expressing their support, believing it would attract new LPs to Aave and make the asset more productive for MLN holders. However, a risk analysis report provided by Son_of_Ishtar, based on Aave's Risk Methodology, concluded that while MLN falls within Aave's risk framework for integration, it currently does not qualify as collateral due to the low maturity of its smart contracts. This sentiment was echoed by Geoffsaavesalot, who agreed that despite the potential of the MLN project, the risk analysis should be taken into account.

In conclusion, while the proposal to add $MLN as a reserve asset to Aave was generally well-received, the community agreed that the risk analysis should be considered. The suggestion is to wait for the Aave v2.5 release and re-evaluate the risk parameters as MLN will require an exposure ceiling.

Posted 3 years ago

Last reply 2 years ago

Summary updated 2 months ago

Last updated 08/12 04:39