LlamaRisk - Monthly Community Update

Governance
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LlamaRisk - Monthly Community Update

July 2026

Overview

LlamaRisk presents our July 2026 monthly update, summarizing key activities and outlining upcoming priorities.

Highlights

Recommendations and inputs

Asset onboarding

GHO related

  • [ARFC] Launch sGHO Cross-Chain - Supported the launch of cross-chain sGHO, enabling L2 access via Chainlink CCIP bridging while preserving unified yield generation and accounting through a single ERC-4626 vault.

Misc.

Research and analysis

  • [ARFC] Oracle Deprecation for Long-tail Assets Across Aave V2 and V3 - Published a proposal to deprecate Chainlink price feeds for selected long-tail assets classified as high operational risk due to low adoption and illiquidity, recommending asset-specific migration plans using fixed-price adapters and controlled parameters to facilitate an orderly wind-down.
  • [ARFC] Low Adoption Asset Deprecation on Aave V3 - Published a comprehensive deprecation proposal to reduce Aave’s risk surface, covering 50 reserves and 21 matured Pendle PTs ($85.3M supply, $11.5M debt) alongside the wind-down of six low-adoption markets (Sonic, Scroll, zkSync, Metis, Soneium, and Aptos; $12.8M supply, $4.1M debt). Coordinated with the companion Oracle Deprecation ARFC, applying reserve freezes, cap reductions to 1, and fixed-price oracles for affected assets

Risk Stewards

The following proposals were published by us to update risk parameters via risk stewards:

V4 Cap Updates

We proposed additional rounds of add-and-draw cap increases across the Ethereum (Core, Prime, Plus, and Global Dollar) hubs and the Avalanche Core hub, raising the total supply cap ceiling to approximately $802M to accommodate growing demand as multiple reserves approached their limits.

Community Engagement

  • Aave Risk Dashboard: Added support for the newly deployed Aave instance on Monad, covering all 12 launch assets with per-asset and per-user position breakdowns.
  • Aave V4 Explorer: Built an interactive explorer for Aave V4’s hub-and-spoke architecture, allowing users to trace asset flows, utilization, idle liquidity, credit lines, and cross-hub topology.
  • SVR Dashboard: Added support for the newly deployed Aave V3 Monad instance, providing insights into liquidation activity, per-asset OEV recapture, liquidation bonus distribution, and technical metrics including inclusion delay and SVR price deviations.

Upcoming Focus Areas

  • Aave V4 Growth: Monitor V4 adoption and propose further add and draw cap increases across Ethereum and Avalanche, alongside ongoing liquidation parameter tuning.
  • SVR Support: Expand SVR analytics to support upcoming deployments on Avalanche, Polygon, and BNB Chain.
  • RWA Assessments: Continue due diligence for new assets and provide ongoing risk support across the Horizon RWA pipeline.
  • Bridge Compliance: Continue working with bridge providers and asset issuers to advance a standard methodology for bridge rate limits.
  • Risk Stewards: Maintain day-to-day risk parameter operations across Aave V3 and V4.

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

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