The developers of Aave, an open-source and non-custodial decentralized finance (DeFi) protocol for earning interest on digital asset deposits while also being able to borrow assets, recently noted that as part of the platform’s focus on security and transparency, the Aave Genesis team will be releasing reports “centred on the security of the Aave Protocol and all the other systems of the Aave ecosystem.”
Ernesto Boado, a full stack and blockchain developer at Aave, writes in a blog post that after the release of the Aave Protocol version 2.0 this past week, the update of the Aave Governance from v1 to v2 has now been submitted to the community “for discussion.”
Boado points out that as with any other software system, “some parts of the infrastructure are critical.” He also mentioned that the Aave governance has “the objective of controlling all the different parts of the ecosystem, and taking into account the aforementioned, permissions over contracts are split between … smart contracts, with different configurations.” (Note: for more details, check here.)
Boado confirms that the design goals of this Governance V2 were “simplicity, by following industry standard practices; and innovation, by introducing delegation of proposition power in both the AAVE and StkAAVE” (after staking AAVE tokens, users get $StkAAVE in return. The staking is at https://app.aave.com/staking).
The Aave team claims that all of the proposed changes or modifications were audited by industry security experts and collaborators of AAVE (PeckShield and Certora).
If the Aave community thinks it’s appropriate, the next steps will involve the launch of the required smart contracts on the Ethereum (ETH) network, and “the creation of the proposal on the Aave Governance v1 to proceed with the upgrade to v2,” Boada noted.
He also confirmed that more than one week has now passed since the launch of the Aave Protocol v2, and the developers are proud that there “haven’t been any incidents.” But there could have been a “potential attack vector” which was “discovered and fixed during these first days.” (Note: more details here.)
As reported in November 2020, DeFi tokens such as Aave continued to rally as institutional investors increased their support for decentralized finance initiatives. Also in November, Aave partnered with Axie Infinity, a Pokémon inspired digital pet Universe game, so players can earn rare NFTs or non-fungible tokens.
As covered in October 2020, Aave had migrated ownership of the protocol to the governance of smart contracts. Aave also introduced Centrifuge, a platform for launching real-world assets in October of this year.