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:
- Recommendations on liquidity pools, LT/LTV, and LTs and LTVs for long tail assets.
- 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 firstname.lastname@example.org.
- Chaos Labs joins Aave as full-time contributor (November 17, 2022)
- Chaos Labs launches Aave v3 risk bot (September 15, 2022)
- Chaos Labs launches Aave v3 risk application (September 7, 2022)
- Aave simulation series: stETH:ETH depeg (pt. 0) (August 29, 2022)
- Chaos Labs dives deep into Aave v3 data validity (August 20, 2022)
- Chaos Labs receives Aave grant (August 2, 2022)