LlamaRisk would like to thank @bgdlabs for taking the initiative with the Aave Asset Class Allowlist (AAcA) proposal. We support this measure and look forward to contributing to its development, as it will help optimize the protocol’s governance framework and risk provider services.
Of particular interest to us is the ability to structure the handling of asset types that are novel to the protocol, thereby setting precedents. While new assets can create new revenue opportunities, introducing a new asset class alongside its risk considerations presents two key challenges:
- Implicit precedents set a loose standard that opens the door for other assets in the same class to follow, potentially posing more risk to the protocol than the initial ‘exception’ asset.
- Informal or incomplete asset class definitions make setting long-term, consistent parameters difficult.
We see the Allowlist as a formalized tool to ensure a more transparent and structured means of managing new assets. It also serves as a first step toward defining appropriate, consistent parameters for related assets in the future.
Thank you again to BGD for spearheading this discussion.