For anyone who is collecting Proof of Aave News on Lenster, featuring: Spotlight 🔦 | Risk 🔎 | Protocol 📰 | Ecosystem 🧉 | Governance ⚖️ | Events 📆 | Hey Anon 👻
HAL allows Aave users to set notifications to receive updates about their health factor on one of the following channels: Telegram, Discord, Slack, email, Twitter or by calling a webhook. HAL supports 2 kinds of notifications for Aave HF - by threshold and periodically 👻
🥦 HF by threshold: Get a notification when your health factor falls below the threshold you defined.
🕜 HF periodically: Get your health factor data every hour/day/week at a time you choose.
stETH has emerged over recent months as one of the most popular collateral types on AAVE. Many users have deposited stETH and borrowed ETH against it. This means that if those prices diverge or the asset “depegs”, there could be a lot of liquidations in AAVE. There has been much speculation on the risks posed by a stETH/ETH price depeg on the protocol and we wanted to follow up on Paul’s last post 59 to provide an update. Late 6/10 Gauntlet observed a large spike in AAVE VaR due to volatility in stETH price and immediately investigated it further.
TL;DR: Current market liquidity is very likely sufficient to handle expected liquidations in the protocol and no immediate parameter changes or risk mitigations are necessary. The AAVE community may want to temporarily freeze the stETH market and pause ETH borrows as an extra precaution.
Please see the link to a full write up on the above to learn more.
As mentioned in last week’s newsletter, please check out the Aave V2 Risk Dashboard by Gauntlet at gov.gauntlet.network/aave. Gauntlet has also launched the Aave Arc Risk Dashboard. Feedback and engagement from the community is welcomed 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.
Risk Parameter Updates:
Despite the support in the previous proposal and unanimous support for Aave Arc recs, the proposal failed to reach quorum. 253.14K votes were compiled, all of which in favor of the rec proposal, however the 320k total required vote was not reached. Gauntlet will look to put them up again in the near future and we encourage the community to review and engage.