Based on this proposal and the people contributing to Allez Labs, I’m in strong support of onboarding the Allez Labs team as a risk provider within Aave. Alex, Khaled, and Matt all have extensive knowledge about market parameterization and, without a doubt, @Alex_BertoG and Matt will bring extensive knowledge about the Aave protocol as Allez contributors.
While there is some overlap between Allez Labs and LlamaRisk, I don’t believe the cost will cumbersome for the DAO. Given that Gauntlet’s previous engagement was for $1.6M over a one (1) year period and they’ve since left the DAO as a risk provider, the same level of funding could onboard two (2) highly knowledgeable service providers that can complement the work that Chaos Labs is already doing within Aave with funds left over.
Based on the previous budget for risk providers ($3.2M), AAVE holders could have three (3) risk providers for a total cost of $2.9M:
- Chaos Labs 12-month engagement for $1.6M
- Proposed Allez Labs engagement for 6mos @ $400k ($800k annualized)
- Proposed LlamaRisk engagement for 6mos @ $250k ($500k annualized)
This would still cost less than the cost for two providers based on the cost for Chaos Labs plus the previous cost for the 12mo engagement with Gauntlet, which Gauntlet has since cut short.
I believe in the next year, we’ll see massive growth within Aave v3 and an uptick in GHO adoption. Given an unprecedented opportunity to expand across networks and onboard new assets (e.g., more LSTs, LRTs), it may be time to consider two (2) dedicated service providers focused on the Aave markets and one primarily focused on GHO. All service providers can collaborate across these initiatives, but it seems we’re at an inflection point where specialization and focus could hugely benefit the DAO.