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ARC: Adding Credmark to Aave v3 Governance permitlist

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governance.aave.com

TL;DR:

Mostarz93 proposed for Credmark, a risk and data project with a strong track record in DeFi risk analysis, to become a registered entity for Aave v3 Governance for financial risk management. The discussion indicated a positive reception to this proposal, with Credmark's goal to establish financial risk standards, its use of Liquidity Coverage Ratio assessments, and its partnerships with Steady State Finance and Yield.app being highlighted.

The discussion primarily revolved around the proposal by Mostarz93 for Credmark, a risk and data project, to be a registered entity for Aave v3 Governance, specifically for financial risk management. Credmark has a proven track record in conducting comprehensive risk analysis in the DeFi space, including an assessment of the probability of insolvency for Aave and Value at Risk in the face of market volatility1.

In response to queries, Mostarz93 further clarified that Credmark's goal is to establish standards for financial risk to the protocol. They have utilized a Liquidity Coverage Ratio (LCR) assessment to compare Aave & Compound’s ability to maintain liquidity under adversarial conditions such as a flash loan attack. The belief is that Credmark, as part of the Risk DAO, could help establish standards around where things like LCR should be maintained3.

The team at Credmark, led by Asan Tulemis, includes experts with backgrounds in crypto credit research, automated distributed systems, and tech and finance startups. They have conducted extensive research on various DeFi platforms and are currently researching lenders, yield aggregators, AMM’s and stablecoins. Credmark has also formed partnerships with Steady State Finance and Yield.app, who will be using their insights to inform their own products4.

In conclusion, the discussion suggests a positive reception to the idea of Credmark becoming a registered entity for Aave v3 Governance, given their expertise and comprehensive approach to risk analysis in the DeFi space.

Posted 2 years ago

Last reply 2 years ago

Summary updated 2 months ago

Last updated 05/12 01:14