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Gauntlet's Quarterly Market Risk Review for Aave V2 has been shared, detailing changes in Liquidation Bonus, LTV, and Liq_Threshold for various assets and introducing the live Aave Risk Dashboard for daily updates. The community's voting results on proposals, including AIP-43 which led to a significant reduction in VaR, were also summarized, and feedback indicates a strong interest in understanding and managing market risk.
The community was updated on the market risk associated with Aave V2 in the Gauntlet’s Quarterly Market Risk Review. Gauntlet has implemented seven sets of parameter recommendations as part of their Dynamic Risk Parameters engagement, with an additional set, AIP-45, currently up for voting. The post detailed changes in Liquidation Bonus, LTV, and Liq_Threshold for a variety of assets. Gauntlet’s Aave Risk Dashboard, which provides daily updates, is now live and the community is encouraged to use it to understand Gauntlet’s methodology and recommendations. Feedback on the dashboard is being collected via a Google Form.
The post also summarized the voting results on various proposals, all of which passed with a high percentage of AAVE Yae votes. These included proposals to reduce liquidation bonuses for Aave V2 assets, adjust LTV/Liquidation Threshold level for Aave V2, and adjust risk parameters across various Aave V2 assets. AIP-43, a risk parameter update, passed with 100% votes, leading to a significant reduction in Value at Risk (VaR) and expected savings to users. Inkyamze provided further explanation on the calculation of VaR. The post also noted a decline in collateral usage for WETH and USDC due to large liquidity providers pulling supply.
Fig appreciated the report and suggested overlaying BTC volatility on the chart and assessing different stablecoins like USDC and DAI. They also expressed interest in supporting more decentralized stables such as an ERC20 UST and requested a clearer view of the correlation matrix. The community's engagement with the report and their feedback indicates a strong interest in understanding and managing market risk.
Posted 2 years ago
Last reply 2 years ago
Summary updated 2 months ago
Last updated 09/12 13:53