[DigitalToday reporter Chi-gyu Hwang] Decentralised finance lending protocol Aave has introduced a new risk management framework and decided to phase out assets that fail to meet its standards.
Aave founder Stani Kulechov (스타니 쿨레초프) said he has developed a new framework over the past few weeks that covers asset risk, cross-chain bridge risk, chain-level risk and automated risk management mechanisms.
If a governance proposal is approved, it will apply to all markets and assets across Aave V3, V4 and Aave Horizon. Assets that do not meet the new standards will be delisted in phases over the coming weeks.
The proposal focuses on significantly raising screening standards for listing or maintaining yield-bearing assets, stablecoins, cross-chain assets and real-world assets (RWA) on Aave.
Review items include issuance authority, upgrade controls, bridge security and off-chain redemption mechanisms. Aave also introduced an authority security rating system that imposes stricter limits on single-signature control, unlimited issuance and vulnerable governance structures.
Chi-gyu Hwang
delight@d-today.co.kr