# LlamaRisk - Monthly Community Update **URL:** \ **Category:** Governance\ **Created:** [June 10, 2024, 3:46pm UTC](https://governance.aave.com/t/llamarisk-monthly-community-update/17935 "2024-06-10T15:46:22Z")\ **Posts on this page:** 1\ **Showing post:** 13
**Author:** ![LlamaRisk](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/llamarisk/32/12865_2.png) [@LlamaRisk](https://governance.aave.com/u/LlamaRisk)\ **Post date:** [January 31, 2025, 7:50pm UTC](https://governance.aave.com/t/llamarisk-monthly-community-update/17935/13 "2025-01-31T19:50:16Z")
# LlamaRisk - Monthly Community Update # January 2025 ## Overview LlamaRisk presents our January 2025 monthly update, summarizing key activities and outlining upcoming priorities. ## Highlights ### Recommendations and inputs #### Asset onboarding - [[ARFC] Onboard Pendle PT tokens to Aave V3 Core Instance](https://governance.aave.com/t/arfc-onboard-pendle-pt-tokens-to-aave-v3-core-instance/20541/2) - Supporting but advising delayed onboarding due to Ethena exposure risks and recommended two pricing methods to address PT valuation challenges. **Pricing PT token is key here** , we’ve explored different options and laid out our recommendation. - [[TEMP CHECK] Onboard pufETH to Aave V3 Core Instance](https://governance.aave.com/t/temp-check-onboard-pufeth-to-aave-v3-core-instance/20770/10) - Preliminary assessment did not support onboarding due to low demand, declining TVL, and lack of a bug bounty program. - [[ARFC] Add EURC to BASE Aave V3](https://governance.aave.com/t/arfc-add-eurc-to-base-aave-v3/20680/2) - Supporting while highlighting concerns about the lack of public audit reports and the absence of a Timelock for upgrades. - [[ARFC] Onboard ggAVAX to Aave V3 Avalanche Instance](https://governance.aave.com/t/arfc-onboard-ggavax-to-aave-v3-avalanche-instance/20546/4) - Recommended a cautious onboarding with a single siloed E-mode, highlighting risks from unaudited smart contracts and centralization under Multisig Labs. - [[ARFC] Onboard rstETH to Aave V3 Prime Instance](https://governance.aave.com/t/arfc-onboard-rsteth-to-aave-v3-prime-instance/20539/2) - Advised against onboarding due to low liquidity depth, lack of a bug bounty, and pending asset delegation activation. #### New Chain - [[ARFC] Deploy Aave on Rootstock Network](https://governance.aave.com/t/arfc-deploy-aave-on-rootstock-network/20681/2) - Supporting with emphasis on rUSDT borrowing against RBTC while highlighting lower security guarantees of its ERC-20 token bridge. - [[ARFC] Deploy Aave v3 on BOB](https://governance.aave.com/t/arfc-deploy-aave-v3-on-bob/20544/4) - Highlighted early-stage ecosystem with low stablecoin TVL (noted GHO opportunity), centralized network operations, and absence of a public fraud-proof system. - [[ARFC] Deploy Aave v3 on Mantle](https://governance.aave.com/t/arfc-deploy-aave-v3-on-mantle/20542/3) - Supporting onboard with conservative parameters while highlighting concerns about the incomplete fault-proof system and absence of bug bounty. - [[ARFC] Deploy Aave v3 on Sonic](https://governance.aave.com/t/arfc-deploy-aave-v3-on-sonic/20543/2) - Supporting with low initial caps while highlighting concerns about the unclear upgrade management process. @bgdlabs recently posted their [own analysis](https://governance.aave.com/t/bgd-aave-sonic-infrastructure-technical-evaluation/20849), which should accelerate deployment. #### GHO related Reviewed GHO initiatives by @TokenLogic: - [[ARFC] Deploy stataUSDC and stataUSDT GSMs on Ethereum](https://governance.aave.com/t/arfc-deploy-statausdc-and-statausdt-gsms-on-ethereum/20682/2) - Supporting with analysis on the potential future impact on Aave and projected opportunities, along with recommended parameters. - [[ARFC] USDT GSM Bucket and Exposure Cap increase](https://governance.aave.com/t/arfc-usdt-gsm-bucket-and-exposure-cap-increase/20645/5) - Engaged in discussions on GSM utility and its future direction. - [[ARFC] Risk Stewards - Reduce GHO Borrow Rate Prime Instance](https://governance.aave.com/t/arfc-risk-stewards-reduce-gho-borrow-rate-prime-instance/20501/2) - Supporting with a recommendation to monitor GHO liquidity changes before considering an increase in the GHO borrow cap. #### E-modes - [[ARFC] Onboard rsETH to Scroll V3 Instance](https://governance.aave.com/t/arfc-onboard-rseth-to-scroll-v3-instance/20742/5) - **Flagged a security risk in a legacy function in the RSETHPool contract** , which was swiftly patched following our [communication](https://governance.aave.com/t/arfc-onboard-rseth-to-scroll-v3-instance/20742/6) with the Kelp team. - [[ARFC] Onboard wrsETH and WBTC to ZKsync V3 Instance](https://governance.aave.com/t/arfc-onboard-wrseth-and-wbtc-to-zksync-v3-instance/20727/2) - Recommended cautious onboarding due to WBTC’s limited liquidity and reiterated concerns about the legacy function risk. - [[ARFC] Onboard rsETH to Arbitrum and Base V3 Instances](https://governance.aave.com/t/arfc-onboard-rseth-to-arbitrum-and-base-v3-instances/20741/2) - Supporting while noting the absence of a Timelock slowing down contract upgrades. - [[ARFC] sUSD Risk Parameter Adjustment](https://governance.aave.com/t/arfc-susd-risk-parameter-adjustment/20793/2) - Supporting with a recommendation to set E-Mode LTV to 0 to prevent new exposure. #### Misc. - [[ARFC] Supply and Borrow Cap Risk Oracle Activation](https://governance.aave.com/t/arfc-supply-and-borrow-cap-risk-oracle-activation/20834) - Provided our support to @ChaosLabs while requesting a bit more information and lessons learned from the WETH borrow rate pilot project on the Prime instance. - [[ARFC] wstETH Borrow Rate Update](https://governance.aave.com/t/arfc-wsteth-borrow-rate-update/20762/3) - Supporting the change with emphasis on its effects and potential risks associated with the update. - [[ARFC] Prime Instance - wstETH Borrow Rate + rsETH Supply Cap Update](https://governance.aave.com/t/arfc-prime-instance-wsteth-borrow-rate-rseth-supply-cap-update/20644/2) - Supporting and emphasizing tail-end risks of collateral depegs and short-term reliance on limited rsETH DEX liquidity during withdrawal periods. ### Research and analysis - [[ARFC] Sunset stMATIC on Polygon instance](https://governance.aave.com/t/arfc-sunset-stmatic-on-polygon-instance/20668) - Authored proposal to freeze stMATIC on Aave V3 Polygon following Lido’s announcement of sunsetting stMATIC. - [LlamaRisk Insights: Regulatory Pressure on USDT and Legal Features of USDT0](https://governance.aave.com/t/llamarisk-insights-regulatory-pressure-on-usdt-and-legal-features-of-usdt0/20839) - Legal brief discussing regulatory concerns surrounding USDT and the USDT0 protocol. - [LlamaRisk Insights: Tether’s Regulatory Status in El Salvador](https://governance.aave.com/t/llamarisk-insights-tethers-regulatory-status-in-el-salvador/20761) - Discussed developments and regulatory implications of Tether relocating operations to El Salvador. [Full research link.](https://www.llamarisk.com/research/examining-tether-s-regulatory-status-in-el-salvador) - [[ARFC] sUSDe and USDe Price Feed Update](https://governance.aave.com/t/arfc-susde-and-usde-price-feed-update/20495) - Co-authored proposal with @ChaosLabs to align sUSDe oracle with USDT pricing. Provided follow-up analysis on [pricing trade-offs, safety mechanisms](https://governance.aave.com/t/arfc-susde-and-usde-price-feed-update/20495/7), and [bad debt scenarios](https://governance.aave.com/t/arfc-susde-and-usde-price-feed-update/20495/13). ### Community Engagement - Actively engaged with key stakeholders, like the discussion on [GSM utility and its future direction](https://governance.aave.com/t/arfc-usdt-gsm-bucket-and-exposure-cap-increase/20645/5). - Collaborated with @ChaosLabs on a [joint proposal](https://governance.aave.com/t/arfc-susde-and-usde-price-feed-update/20495), followed by addressing community concerns through detailed analysis. ## Upcoming Focus Areas - Preparing for the release of Umbrella - Analyze and make parameter recommendations for new assets and markets. - Recommendation for legacy/underutilized assets offboarding We welcome community feedback and suggestions. Please share any questions, ideas, or areas where you would like increased focus from the LlamaRisk team. --- _[View the full topic](https://governance.aave.com/t/llamarisk-monthly-community-update/17935)._