Thank you all for the feedback and support. It’s encouraging to see how deeply the community values and prioritizes risk management. We’re excited to begin contributing full-time and driving impact for the Aave community.
Regarding our approach to simulations - we’ve provided documentation, blog posts, and video tutorials which can be found throughout the proposal. We welcome you to review those as they will provide further detail about the Chaos platform. As the DAO matures and continues to lead the industry in Risk Management we are supportive of a multi-risk vendor approach which is common practice in traditional finance.
The product we will provide for Aave v3 is complementary to existing risk partners. As mentioned in our prior post, v3 has not received support since launch, despite billions of dollars worth of assets across borrow and supply markets. v3, along with other non-v2 markets was out of the scope of previous Gauntlet engagements.
We’ve also addressed any potential areas of overlap previously:
I can’t speak to the exact differences between our product and Gauntlets since the Gauntlet platform is closed. The available literature is high-level and does not delve into implementation details. Obviously, in agent-based modeling, every agent feature, parameter weight, price trajectory, slippage model and more have a great effect on the end result. As the models, weighting, and execution environment (our simulations run on blockchain forks) are different we will expect a drift in results. For any future markets with overlap, the differences in results are great. They provide an additional data point for the community and will enable a data-driven decision-making framework for setting risk parameters. At Chaos, transparency and explainability are key company values: once we are engaged by the community, we will be open-sourcing our Aave-related agents for full visibility, review, and enhancement. We’d love for Gauntlet and other risk contributors to do the same. We’re excited to collaborate with all contributors and excited to push the standard of risk management higher.
While this proposal has complementary aspects (we are focusing on unserviced markets with new challenges such as e-mode, isolation mode, portals, and asset listing), I want to be clear: we are competing with Gauntlet (and other risk vendors) to build the best product possible and win Aave’s business. This competition should push all vendors to deliver the highest quality work which will greatly benefit the DAO. We believe that the current technology and products built for DeFi are primitive, and can be improved at least 10x. We’re excited to let our products and offerings speak for themselves.
@Alok - Thank you for disclosing the clear conflict of interest ahead of the vote with Standard Crypto’s and your personal early-stage investments in Gauntlet. We appreciate the transparency and believe it is key to the long-term development, sustainability, and advancement of Aave.
We’re appreciative of all the community engagement received over the past month with this proposal. With the positive feedback we’ve received on the revised copy, we plan to post a Snapshot vote tomorrow for community consideration.
The Chaos team is excited to contribute to the Aave DAO, and can’t wait to get started!