At Gauntlet, we aim to drive understanding and adoption of DeFi. We believe that robust risk management is necessary in order to bring DeFi to the mainstream.
In order to provide more clarity on market risk in Aave, we have made updates to our risk dashboard. Please see the below link for a detailed explanation.
Dashboard Update and VaR Deep Dive
To summarize, we have split our existing VaR into insolvencies (new definition of VaR) and liquidations (Liquidations at Risk or LaR). As a result of this change, VaR will now appear substantially lower and the bulk of capital at risk will appear in LaR.
We hope that the above post helps bring more clarity on risk in Aave. We plan on building more features into the dashboard as we improve our models and refine our recommendation methodology. In addition, we are always keen on receiving feedback from the community. If you have any feedback please feel free to reach out via the Send Feedback button on our dashboard, or directly to dashboard-feedback@gauntlet.network.