Aave

Chaos Labs helps navigate DeFi volatility with an expanded Aave V2 risk partnership

Omer Goldberg

Cover Image for Chaos Labs helps navigate DeFi volatility with an expanded Aave V2 risk partnership

Chaos Labs helps navigate DeFi volatility with an expanded Aave V2 risk partnership

We are thrilled to announce that we have expanded our collaboration with Aave. As such, we will now include all V2 markets in our risk coverage. The Aave community approved our proposal in January 2023, allowing us to expand on our V3 efforts.

Chaos Labs and Aave V2: Reflecting on progress 🔎

The Aave community has been receptive to our previous V2 proposals. Since joining as a full-time contributor in November 2022, we've made much progress, providing risk parameter recommendations and research. Some of our contributions to enhancing Aave's V2 markets include the following:

  • Coordination with DAO contributors to submit risk proposals for Aave V2:
  • A thorough analysis of LT impact on Aave V2. We recommended adopting a short-term risk mitigation strategy for the protocol. Our suggestion was to reduce LTs while migrating to V3.
  • We have studied the effects of BTC v. WBTC oracles used in Aave and recommended migrating to the WBTC/ETH oracle for V3.

We also developed an asset protection tool to help identify manipulation risks. The tool is core to our work in implementing protective measures. It's built to help protect Aave from malicious actors.

Next steps 🚀

We are excited to expand our coverage and continue contributing to the Aave community! As always, we would love to hear from the community. Feel free to reach out on Twitter or at aave@chaoslabs.xyz.

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