Summary
- Aave said it plans a sweeping overhaul of its collateral assessment and listing standards after the KelpDAO hack.
- Aave said future collateral reviews will weigh price volatility, cyber security, interoperability and technical architecture.
- The market is focused on whether DeFi protocols tighten security and collateral risk-management standards, as well as the scope of the new rules and the ecosystem's response.
Forecast Trend Report by Period
Aave is revamping its risk-management framework after the recent KelpDAO hack, tightening standards for evaluating collateral assets.
CoinDesk reported on May 7 that Aave plans a sweeping overhaul of its collateral assessment and listing criteria.
The protocol said future collateral reviews will weigh cyber security, interoperability and technical architecture alongside price volatility.
Aave also plans to publish a new minimum-standard playbook for issuers seeking to list on the protocol.
Linda Jeng, chief legal and policy officer at Aave Labs, said the existing risk-management framework had been too heavily focused on financial risk and volatility.
"This time, the ecosystem rescued itself rather than the government," Jeng said. "Going through the crisis is raising the bar."
Market participants are watching whether DeFi protocols tighten security and collateral risk-management standards. The scope of the new rules and the ecosystem's response remain key variables.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
