LlamaRisk supports this proposal, an important initiative for the automated Risk Oracle focused on optimizing the slope1 interest rate parameter. Consistent with our previous feedback on the supply and borrow cap automation proposal, we see this as a meaningful step toward enhancing the efficiency and responsiveness of Aave’s parameter management.
We appreciate the clear structure involving demand modeling, model selection, and constrained optimization. Including explicit constraints, particularly the realized utilization constraint, and the proposed limits on update frequency and magnitude are crucial guardrails that we view positively. While the automation of IRM parameter updates offers clear benefits in efficiency and responsiveness, it undeniably increases reliance on centralized components, namely the Edge infrastructure and, critically in this case, the demand modeling and optimization methodologies employed by Chaos Labs.
This centralization of complex decision-making logic introduces risks that must be carefully managed and balanced against operational gains. Therefore, while generally supportive of this direction, LlamaRisk reaffirms its commitment to monitor the changes and challenge them if needed. We look forward to continued discussion on the implementation details and the ongoing transparency of the model’s performance.
Disclaimer
This review was independently prepared by LlamaRisk, a community-led decentralized organization funded in part by the Aave DAO. LlamaRisk is not directly affiliated with the protocol(s) reviewed in this assessment and did not receive any compensation from the protocol(s) or their affiliated entities for this work.
The information provided should not be construed as legal, financial, tax, or professional advice.