Renew LlamaRisk as Risk Service Provider - epoch 3
01Summary
Renew LlamaRisk's engagement as a risk service provider for Aave DAO for one year, with compensation of $1 million (1 million aEthLidoGho) paid via stream, representing a 25% increase from the previous term.
- Type
- treasury allocation
- Funding
- $$1,000,000
Key changes
- Create 1-year payment stream of 1 million aEthLidoGho to LlamaRisk (0x9eE16dBDE572886342fc1e2Db8525DEFB007b27c)(high)
- 25% increase in service fee from previous epoch ($1m vs prior term)(high)
- Continued provision of independent risk analysis, ARFC support, and strategic contributions to Aave security(high)
- Strategic initiatives include umbrella parametrization support for Aave Finance Committee, Smart Value Recapture monitoring, RWA collaboration on Horizon program, Aptos ecosystem deployment support, and sGHO integration support(high)
Notable concerns
- Potential conflict of interest noted: LlamaRisk serves on Ethena risk committee while providing risk analysis for Aave assets on Aave protocol
Generated by Kvorum
02Description
Simple Summary
This proposal offers the opportunity to renew LLamaRisk engagement as a service provider for a year.
Motivation
LlamaRisk submits this proposal to renew our role as an Aave Service Provider. Over the past year, we have delivered consistent value to the DAO through independent risk analysis and proactive contributions to Aave’s security and strategic decision-making. We cherish the opportunity to work for an organization that encourages public debate and believe that retaining the services of two risk providers is part of Aave’s moat.
For this next epoch, we propose a service fee of $1m for one year, a 25% increase from the previous term. This adjustment reflects our expanded engagement, the need to retain specialized talent dedicated to Aave’s risk management, and our commitment to upholding the highest service standards.
Our contributions are fully transparent and verifiable through our daily engagement on the forum, monthly community updates, and research publications. Below, we review our key achievements in Epoch 2 and outline our vision for this renewal.
Epoch 2 retrospective
Consistency & responsiveness:
- Supported 90 ARFCs, opined on 9 new chains deployments, and served as a reliable signer for the Aave Guardian.
- Responded to over 100 forum posts with technical analysis and risk recommendations.
- Maintained an average of 91h response time for ARFCs, generally complying with the established 5-day windows.
Legal & regulatory content:
- Published relevant and informing legal research, including:
Uncompromising independence:
- Advised halting sUSDe cap increases and raising liquidation penalties. Although we serve on the Ethena risk committee, which can pose potential conflicts of interest, we prioritize Aave’s solvency and users’ safety above all.
Research & tooling:
- Balancing Act: LST Pricing Mechanisms for DeFi Lending
- Ethereum Staking Penalty Simulator
- Aave 3.2 Liquid E-mode short explainer
- Ethena Reserve Fund Drawdown Methodology V2
- MPCs in Protocol Treasury and Operational Context
- Research on Smart Value Recapture (SVR)
Elevating security standards:
- Actively advocated for and succeeded in establishing several critical bug bounty programs for protocols seeking Aave integration (Stakestone, bCSPX, Botanix Labs, rsETH, Origin Sonic, Resolv, Rings, and many others in progress)
- Championed Operation Spring Cleaning, an initiative to address qualitative risks (e.g., rsETH vulnerability in legacy function, stS access controls oversight) and raise the standards. Presented at EthDenver (Beyond Numbers: Qualitative Risk Analysis in DeFi).
- Released the first version of our risk metrics dashboard: score.llamarisk.com
Community engagement:
- Launched This Week In Aave, a weekly X thread summarizing protocol developments.
Scope
Building on Epoch 2’s foundation, we will continue centering our services to Aave DAO around producing in-depth and actionable risk assessments in recommendations for all current and prospective assets on Aave instances. We will continue working closely with other service providers, especially @ChaosLabs, ensuring comprehensive risk coverage and prioritize the following strategic initiatives:
- Umbrella parametrization: Provide dedicated support as members of the newly established Aave Finance Committee, applying our data-driven capitalization methodology developed through months of research. This approach uses rigorous analysis of market-wide price shocks to determine optimal insurance caps
- Smart Value Recapture (SVR): Support and monitor SVR implementation.
- RWA collaboration: Work with @AaveLabs on the Horizon program, leveraging our domain expertise in RWA risk assessment.
- Aptos Deployment: Support Aave’s expansion to Aptos with a comprehensive risk analysis of the ecosystem.
- sGHO: Continue supporting the GHO Savings rollout, building on our GSM fee methodology work. We’ll provide risk parametrization and supply target estimations to support @TokenLogic and @kpk’s integration plans.
We propose a 1-year term to underscore our long-term commitment to Aave DAO—performance will dictate continuity.
Specification
A 1 million aEthLidoGho stream directed to the address0x9eE16dBDE572886342fc1e2Db8525DEFB007b27c will be created starting immediately for a duration of one year.
References
- Implementation: AaveV3EthereumLido
- Tests: AaveV3EthereumLido
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal contains a single decoded on-chain action: a generic execute() call to a payload contract address. This is the standard Aave governance pattern where the actual granular logic (creating the aEthLidoGho stream, setting the recipient address, and the one-year duration) is hardcoded inside the payload contract's source code rather than passed as decoded calldata arguments. Because the decoded action shows no specific parameters (amount, recipient, duration), it is not possible to directly cross-verify the numeric and address details stated in the Specification section (1,000,000 aEthLidoGho, recipient 0x9eE16d..., one-year duration) against the calldata alone. The referenced implementation contract (linked in the proposal) would need to be inspected to fully confirm these values, but that is a separate file, not part of the provided decoded actions. Given this opacity, I cannot flag a value or target mismatch with confidence, nor can I confirm exact compliance — so confidence is marked low. No contradictions or omissions are apparent from what is available in the decoded action, and the general narrative (renewing a service provider with a fee paid via a token stream) is consistent with a typical Aave payload of this kind. Therefore, I record the assessment as consistent, but with low confidence since the calldata does not expose enough detail to fully validate the specific numeric claims in the description.
Generated by Kvorum
04Actions
- Target
- 0x1883…f9af
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.