LlamaRisk - Monthly Community Update

[LlamaRisk]

LlamaRisk - Monthly Community Update

November 2024

Overview

LlamaRisk presents our November 2024 monthly update, summarizing key activities and outlining upcoming priorities.

Highlights

Recommendations and inputs:

Asset onboarding

• [ARFC] Add FBTC to Aave v3 Main Market on Ethereum - Supporting after productive discussions with Ignition team, noting solid asset architecture
• [ARFC] Add PAXG to Aave v3 Main Instance on Ethereum - Supporting with noted concerns about 3/20 multisig
• [ARFC] Add rsETH to Aave V3 Ethereum - Revived proposal now feasible with liquid e-modes implementation
• [ARFC] Chaos Labs - Migrating MKR to SKY on Aave V3 Ethereum Main Market - 10/20/24
• [ARFC] Onboard SCR to Aave V3 Scroll Instance
• [ARFC] Onboard AUSD to Aave V3 on Avalanche We expressed concerns, vote outcome was in support, we deem the proposed parameters safe
• [ARFC] Onboard cbBTC to Arbitrum Instance - Liquidity on Arbitrum does not justify onboarding, we asked Coinbase to work towards setting a minimum viable level of liquidity

New Chain

• [ARFC] Deployment of Aave on Linea - We applied our new Chain Qualification Framework (CQF). Great technical report from @bgdlabs and risk report from @ChaosLabs. There is a marginal level of overlap, although we strongly feel that this benefits the DAO.
• [TEMP CHECK] Aave V3 Deployment on the Spiderchain (Botanix Labs) - Preliminary review as this chain is yet to be launched and had an intro call with the team and signing an NDA.

GHO related

A few initiatives from @karpatkey_TokenLogic and @ACI are supporting GHO, which we were happy to review:

• [ARFC] Increase wstETH Borrow Rate on Lido Instance
• [ARFC] Mint & Deploy 10M GHO into Aave v3 Lido Instance
• [TEMP CHECK] Deploy aUSDC GSM on Avalanche
• [ARFC] Onboard GHO and Migrate Streams to Lido Instance

E-modes

• [ARFC] Enable cbBTC/WBTC liquid E-Mode on Aave v3 Mainnet
• [ARFC] Enable sUSDe/USDT Liquid E-Mode on Core Instance
• [ARFC] Enable tBTC/WBTC liquid E-Mode on Aave v3 Mainnet
• [ARFC] Onboard and Enable sUSDe liquid E-Mode on Aave v3 Mainnet and Lido Instance

Legal Commentary

• [ARFC] Fluid Alignment with $INST Purchase - Clarifications requested

Misc.

• [ARFC] wstETH/WETH Lido Borrow Rate Update
• [ARFC] Increase Borrow Slope1 to all Stablecoins across all Aave Instances - In support to reflect current market rates and improve efficiency.

Research and analysis:

• Ethereum Consensus Penalty Simulator (ECPS)
• Understanding Aave v3.2’s Liquid e-Mode - explainer article

Community Engagement:

• @ChaosLabs’ launch of Edge. We want to congratulate our peer and acknowledge their contribution . We’ve set up monitoring during the pilot phase to ensure the robots are not misbehaving.
• [TEMP CHECK] Aave Instances Strategy Shift - We are very much on board with @ACI’s vision and have signaled we are working on a revised suite of frameworks to support this initiative.
• Initiated outreach to Service Providers and Delegates to gather feedback and improve coordination across the ecosystem

Upcoming Focus Areas

• We are working on our Asset Probation Framework (APF) and gathering feedback from Service Providers. This will help establish when and how assets should follow a probationary onboarding track, defining success metrics to monitor while maintaining direct onboarding paths for established assets.

We welcome community feedback and suggestions. Please share any questions, ideas, or areas where you would like increased focus from the LlamaRisk team.