LlamaRisk is pleased to share our monthly community update for May 2024, highlighting our activities over the past month and our focus areas for the upcoming period.
Highlights
Began our engagement on May 1st, 2024 - the full scope can be found here.
Established communication lines with key stakeholders and delegates, including a biweekly coordination meeting with @ChaosLabs to enhance collaboration.
Worked on 2 explainer articles: GHO Stablecoin and Aave V3 Parametrization, Oracles and Liquidations, expected to be published next month.
Focus for Next Period
Improve our response time to ARFCs, adapting to a faster pace compared to our typical workflow of producing longer-form research articles and in-depth analyses
Publish drafted educational articles on GHO and Aave V3 risk parameters
Follow up on the evolution of Maker’s endgame strategy and collateral types, especially USDe
Continue developing our Aave-specific asset onboarding and risk parameter frameworks
Deep dive into Kelp’s rsETH
We welcome any feedback or suggestions from the community. Please do not hesitate to ask questions, ideas, or areas where you would like more focus from the LlamaRisk team. Special thanks to @ACI and @ChaosLabs, who have been tremendously helpful and welcoming in the onboarding process.
Expanded team capacity by onboarding an additional full-time analyst
Developed internal tooling to monitor governance forum posts, snapshot votes, and market parameters
Upcoming Focus Areas
Complete and publish rsETH comprehensive analysis
Attend EthCC to engage with Aave community members, delegates, and ecosystem partners
Continue educational explainer article series (parametization, oracle, liquidation, irm)
Conduct research on tradeoffs of using market vs. exchange rates
Monitor ongoing loyalty (points) programs and analyze their implications for listed assets in Aave
We welcome community feedback and suggestions. Please share any questions, ideas, or areas where you would like to see increased focus from the LlamaRisk team.
Started a review of the proposed Umbrella and AAVEnomics update to share our queries and observations in the next few days.
Started working on a tool to simulate different slashing conditions
Quarterly report on spending
In addition to the month’s deliverables and in keeping with our original commitment to transparency and accountability, we are pleased to provide our first quarterly report on spending.
Spent 100,283 out of 125,000 GHO claimable in first three months
76% of funds used directly for applied research
We continue ramping up our involvement, onboarding talent, and appointing dedicated resources to Aave. Below is our forecasted spending for the next period:
Ramping up our involvement with the GHO stablecoin
Continue the educational explainer series; we have an article in the works on ChainLink CCIP and its use in Aave
Continue research on tradeoffs of using market vs. exchange rates
Monitor ongoing loyalty (points) programs and analyze their implications for listed assets in Aave
We welcome community feedback and suggestions. Please share any questions, ideas, or areas where you would like increased focus from the LlamaRisk team.
Tradeoffs of using market vs. exchange rates and usage of CAPO framework
Framework for loyalty points programs
Meetings and feedback:
Met with several delegates to gather feedback on our work
Upcoming Focus Areas
Our main priority is to conclude the assessment and make recommendations for the WBTC custody changes. The proposed BUILD GSM integration with BlackRock is also a key area of interest; we are exploring the legal implications and opportunities for integrating RWAs.
Other areas of research include:
GHO user analytics: researching the user profile of GHO to gain insights into adoption trends, collateral usage, user portfolios, and cross-protocol activity
Tooling for historical slippage at different swap sizes
Research on the safe level of asset-specific capitalization for Umbrella
Slashing simulation, which we intend to open-source
Monitor bot for RWA redemption buffer
Further research on supply cap limits (l2 concentration) and usage of cross-chain liquidity for liquidations
We welcome community feedback and suggestions. Please share any questions, ideas, or areas where you would like increased focus from the LlamaRisk team.
