May 2023
Overview
This update highlights the past month’s activities and proposals and shares our planned work.
Highlights
-
We launched the Chaos Labs Asset Listing Portal, a tool built into the Chaos Labs Parameter Recommendation Platform to support the onboarding of new assets to the Aave protocol. The Asset Listing Portal is designed to help streamline community decision-making by presenting key metrics about the considered assets, such as volatility, exchange liquidity, market cap, on-chain activity, and the initial risk parameter recommendations for the considered assets by Chaos Labs. A walkthrough of the portal and its features can be found here.
-
Added support for Ethereum on the Chaos Labs Parameter Recommendation Platform. The platform now supports Avalanche, Arbitrum, Optimism, and Polygon, and Ethereum, with Metis to follow next.
-
Following the Chaos Labs - LSD Methodology Update, we provided our recommendations for updating the pricing of LSDs to use primary exchange rates, which alongside BGD’s Generalized price sync solution, could allow for more aggressive risk parameter settings. The full details on this coming change can be found on the BGD Operational oracles update.
-
Three proposals were published (listed below) for risk parameter updates and new asset listings as part of the efforts for V2 → V3 migration.
- [ARFC] Add ENS to Aave V3 Ethereum
- [ARFC] Add 1INCH to Aave V3 Ethereum
- Risk Parameter Updates - Aave V3 Ethereum - a proposal to increase LTVs and LTs for WBTC, WETH, WSTETH, LINK, USDC, and DAI on V3 Ethereum.
-
Provided analysis and supported the following proposals:
- [ARFC] Add rETH to Aave V3 Arbitrum Liquidity Pool
- [ARFC] Add fUSDC to Ethereum v3
- [ARFC] Add RPL to Ethereum v3
- [ARFC] Add FRAX to Aave V3 Ethereum
- [ARFC] Initiate ETH Correlated E-mode on Optimism
- [ARFC] Optimism Create ETH E-Mode
- [TEMP CHECK] Add ARB to Arbitrum Aave v3
- [TEMP CHECK] Aave V3 Deployment on zkSync Era Mainnet
- [ARFC] wstETH Supply Cap Increase Arbitrum v3
- [ARFC] Increase wstETH Supply Cap on Polygon v3
- [ARFC] Increase stMATIC SupplyCap
- [ARFC] wMATIC Supply & Borrow Cap Increase Polygon v3 16.05.2023
- [ARFC] Ethereum v3 Supply Cap Update 18.05.2023
- [ARFC] Optimism v3 Supply Cap Update 20.05.2023
- [ARFC] Polygon v3 Supply Cap Update 2023.05.21
- [ARFC] Polygon Supply Cap Update 23.05.2023
- [ARFC] Metis, WETH Supply Cap Increase Metis v3
- [ARFC] Increase Supply Caps for LSTs on AAVE V3
What’s Next
In the coming month, the Chaos team will focus on the following few areas:
- Publish Chaos Labs’ IR Curves methodology
- Community plan for V2 → V3 migration as described here
- Continuous optimization of risk parameters on V3 deployments
- Integrate and support V3 Ethereum into the Chaos Labs Parameter Recommendation Platform.
- Adding support for Polygon and Avalanche V2 on the Chaos Risk Monitoring Platform to improve community engagement.
- Analysis and parameter recommendations for new assets and markets.