[ARC] Aave V3 Ethereum Deployment: Assets and Configurations

Governance General
24

To respond quickly to the top of your post:

  1. First things first - we’re happy to work together. Feel free to start a thread on the forums and let us know what your expectations are here and we can discuss and land on what that looks like.
  2. No one I’ve talked to at Gauntlet is aware of being sent v3 recs to review. If so - we’re sorry we missed that message. I just DMed you my TG handle and we can set up a group for you to contact us in the future. In general, we try to go straight to the forums where possible, in order to keep the community in the loop the best we can.
  3. That being said - our risk product is a complete solution for Aave’s risk needs. The #1 piece of feedback we got from AAVE stakeholders was that they wanted us to support all markets and assets. This is exactly what we commit to in the renewal. We plan to produce recs for all AAVE markets and assets. We encourage you to do so as well - it will give the community more options for how they want to balance risk in the protocol. This won’t work all the time, as there are corner cases where if our recs conflict it could increase risk in AAVE. That’s something we’ll have to figure out together in the future.

Regarding your parameter suggestions, I’ll give the community a chance to weigh in before we respond in detail. I’d love to know what other people think:

  • Do borrow and supply caps protect the protocol against low liquidity assets? Or should we keep LT low for the main assets as a further precaution?
  • Should we phase the launch as Chaos suggested? Or go with the plan selected here ?
  • How worried are we about stETH liquidity concentration? We are looking forward to Chaos’s aforementioned analysis here

We think our proposal is very low risk. We mean that. Without a ton of analysis, I’d say Chaos’s is even lower. If the community wants to go an even more conservative route here, we’d be happy to work with you all to do so and focus on increasing efficiency later. However if we felt that there was a more conservative path that wouldn’t needlessly punish users, we would have taken it.

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