Chaos Labs recommends not listing YFI on AAV3 V3 Ethereum at this time. Although our general approach is to promote listing more volatile assets to increase the offering of AAVE protocol, the risk-reward ratio here is not balanced, with no strong signal of significant reward.
Liquidity, Market Cap, and Manipulation Risk
When analyzing market cap and trading volumes of assets for listing, we are looking at the past 180 days, especially in light of the recent market turbulence. The average market cap of YFI over the past 180 days was $234M, and the average daily trading volume was $34M. We find the market cap significantly low, especially when examining the lows to which it fell over the past few months.
