Aave Weekly: Protocol Performance & Governance Update

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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hi, please do not forget post the weekly updates here

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Aave Weekly 2021W33.pdf (280.7 KB)

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Aave Weekly 2021W34.pdf (285.0 KB)

Aave Weekly 2021W35.pdf (281.8 KB)

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Aave Weekly 2021W36.pdf (281.0 KB)

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Aave Weekly 2021W37.pdf (282.8 KB)

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Hi team, I think that weekly report no 37 was never sent to the email subscribers of the weekly report. Also, I did not find the weekly report no 38 that typically comes out on Mondays. Thanks in advance!

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Hi @Vince
Report 37 is just above, and the 38 is coming. Aave Weekly has been integrated into the Ecosystem Weekly Newsletter of @0xbilll and @aavegrants: aavenews.substack.com

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Aave Weekly 2021W38.pdf (283.4 KB)

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Glad your time on this seems to have been freed up. We missed the opportunity to bid on automating it for you, went to LlamaDAO.

Are there any areas covered by Aave Grants which you’d personally consider a priority but have been overlooked by potential suppliers?

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Aave Weekly 2021W39.pdf (285.5 KB)

Be sure to subscribe to Aave News if you want key metrics, governance updates, top stories and more sent to your inbox each week.

Hey @iguana, there is currently an active RFP from Aave Grants to create an Aave Weekly Analytics Report. From the description…

Week on Week reporting of liquidity and usage of the Aave Protocol to replace prior update. Can start as a twitter post and become its own website + interactive dapp over time. Can be produced using the Aave V2 Liquidity API.

If of interest, you can apply here!

Aave Weekly 2021W40.pdf (283.2 KB)

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Quick question, what is done with the revenues generated by AAVE?

Thanks

Here is a breakdown of the distribution from what the protocol generated last week. More details are in the second table in the above pdf.