Aave Weekly: Protocol Performance & Governance Update

I have pointed the API issue for next update as it takes days to resync the subgraph

You can also calculate it by using the reserve factor which shows the share of interests collected by the ecosystem collector Polygon Market - Risk
Given: Depositors Interests = (1 - Reserve Factor) x Total Interests
Reserve Factor Collections = RF x TI = (RF x DI)/(1-RF)

Aave Weekly 2021W25.pdf (283.9 KB)

Thanks Alex, those weekly reports are very helpful. What would be super convenient to get the broader picture is to have consolidated financials over longer period (quarterly/annual/LTM/YTD). If I had the skills, I would apply for a grant to develop something similar to what they did at Yearn (https://www.yfistats.com/financials/IncomeStatement.html). Hopefully someone in the community will pick it up, otherwise I might start to learn and volunteer, but this will take time.

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Yes, I hope so as well

If you are interested, please contact https://aavegrants.org/

There ideas and funding available

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Thanks Alex for posting this. Super helpful. Do you happen to have the on-chain addresses for the ecosystem collectors? I see that the Ethereum ecosystem collector got ~$300k over the week. Where does the remainder of the $675k go? Is it a polygon address?

So you have
Ethereum Ecosystem Collector

Polygon Ecosystem Collector

Aave Weekly 2021W26.pdf (292.4 KB)

Aave Weekly 2021W27.pdf (284.2 KB)

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Aave Weekly 2021W28.pdf (282.3 KB)

Aave Weekly 2021W29.pdf (283.3 KB)

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hi,when W30 report will be released?

Aave Weekly 2021W30.pdf (280.7 KB)

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Thanks for the reminder, its here

Aave Weekly 2021W31.pdf (282.0 KB)

Great summary as always, Alex. Liquidations seem to happen more often on Polygon as a ratio to liquidity when compared to V2 - why do we think that is?

I think this can be explained by:

  • The Polygon market is more capital efficient with 50% Utilisation VS 42% on the V2 market
  • V2 liquidity is also more whales driven, they have higher exposures so hopefully more monitoring/risk management
  • MATIC has been particularly volatile and responsible for many liquidations on the Polygon Market (not this week 31 but previously)

Thanks Alex - the second point is most interesting, a reflection on the behavior of layer two users.

Aave Weekly 2021W32.pdf (279.7 KB)

Hey @Alex_BertoG these are great. On this report I came across the ‘ecosystem collector’. Can I ask:

  • What is the money used for - is it for overheads, security etc?
  • How does it generate the income - % of the interest of borrowing and lending?

Just curious. Thank you!

Hi @jamieg

At the moment, the liquidity collected in aTokens has just been compounding interests in the ecosystem collectors. It adds up to the Treasury which also includes the AAVE Ecosystem Reserve which usually finances ecosystem spendings such as liquidity mining or the Grants DAO. You can track how the treasury is doing on: Dune Analytics

The ecosystem collects a share of the interests paid by borrowers, as defined by the Reserve Factor, generally 10-35% of the interest rates based on the risks of the underlying asset. More details in Risk Parameters - Risk

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