[ARFC] Aave Risk Framework
AI summary
This Aave DAO proposal introduces a comprehensive Aave Risk Framework to standardize how all assets are evaluated and managed across Aave V3, V4, and Aave Horizon. It outlines a binding set of requirements and procedures for asset onboarding, ongoing due diligence, re-evaluation during material changes, and parameter adjustments or deprecations. The framework is structured into four layers: Asset Risk, Bridging Risk, Monitoring and Automated Risk Oracle Systems, and Chain Risk, each addressing different aspects of potential risks.
If passed, this proposal will establish a clear and consistent risk management standard for all assets on Aave, enhancing the protocol's security and stability. It benefits all Aave users by reducing exposure to risky assets and standardizing risk assessment. There are no direct financial allocations or specific individuals being paid through this proposal.
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🐳 Whale votes
6 votes > 5% VPFull proposal
Summary
This framework sets the risk standard that governs every asset on Aave V3, V4, and Aave Horizon. It is binding at onboarding, at every quarterly due diligence refresh, at every material-change re-evaluation, and at every parameter or deprecation decision taken on a listed asset. The requirements, evaluation points, and procedures below are to become the standard against which every listing and every parameter decision is measured once the framework is endors…