Over the past several weeks, Aave has been developing a new risk framework that includes Asset Risk, Bridging Risk, Chain Risk, and advanced automation capabilities for risk management.
This framework establishes a new standard for how Aave assesses, monitors, and manages risk across the protocol.
After passing the proposal, the risk framework will be applied across all markets and assets. Assets that do not qualify for the new standard will be off-boarded from Aave over the coming weeks.
LlamaRisk has published an ARFC proposing a new standardized Risk Framework that governs all assets on
@Aave V3, V4, and Aave Horizon.
The framework establishes standards for evaluating asset, bridge, and chain-level risk criteria, and for monitoring and automated risk management systems.