Title: [ARFC] Onboard New Risk Service Provider

Author: ACI ( Aave Chan Initiative)

Date: 2024-04-12

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Summary

The current ARFC is set to gather all information regarding potential new Risk Service Provider for Aave DAO and allow governance to choose at ARFC Snapshot stage, which proposal shall move forward to AIP for final consideration as New Risk Service Provider alongside Chaos Labs.

Motivation

Currently there are 3 different proposals for just one Risk Service Provider slot.

As agreed by community feedback, to optimize ressource allocation, Aave DAO will only have two Risk Service Providers.

Currently, Chaos Labs is one of the Risk Service Provider, and the other slot will be represented by one of the current 3 teams that submitted different proposals previously in the form of TEMP CHECK.

It has been also decided to allow one ranked voting ARFC snapshot to allow governance to express their preference.

Specification

There are currently 3 proposals from 3 different Service Risk Providers. All proposals have passed both TEMP CHECK and TEMP CHECK Snapshot stage.

• LlamaRisk
  • TEMP CHECK
  • TEMP CHECK Snapshot
• OpenBlock
  • TEMP CHECK
  • TEMP CHECK Snapshot
• Allez Labs
  • TEMP CHECK
  • TEMP CHECK Snapshot

In order to make easier to decide at ARFC Snapshot, which proposal shall move to AIP for final consideration (and therefore, which Risk Service Provider should be onboarded into Aave DAO), a table with a summary of each proposal has been made.

Risk Service Provider	Profile	TEMP CHECK	Proposal’s duration	Desired Budget
LlamaRisk	Established in 2021 as a service to Curve DAO and its LPs, providing risk transparency analyses of assets listed on Curve, including stablecoins, RWAs (Real World Assets), LSTs (Liquid Staking Tokens), and LRTs (Liquid Restaking Tokens). In 2023, partnered with Prisma Finance to develop a comprehensive framework for assessing LST collateral risk, to produce detailed analyses for onboarding assets onto the protocol. We have since expanded our suite of risk management solutions with agent-based simulations and DeFi strategy management.	https://governance.aave.com/t/temp-check-onboard-llamarisk-as-aave-risk-service-provider/17053	6 months	$250,000
OpenBlock	OpenBlock is an established provider of economic modeling for leading protocols in the space, including: EigenLayer, Lido, Arbitrum, Solana, Sui, Uniswap, Scroll, Fuel, Linea, Mode, and many others; we have also received a small grant in the past to study incentives on Aave. OpenBlock Labs is based in San Francisco, CA, dedicated to fostering sustainable growth within decentralized protocols through a data-driven platform.	https://governance.aave.com/t/temp-check-onboard-openblock-as-aave-risk-service-provider/17157	6 months	$350,000
Allez Labs	Allez Labs is a team of data and risk experts with deep experience with Aave and its community since 2019. We have been involved in nearly all risk events that have affected the protocol. We are a team of longstanding Aave risk contributors, solicits community feedback for a 6-month engagement with Aave DAO. Our goal is to deliver continuous risk management and R&D to the DAO. We aim to maintain and improve Aave’s strong risk standards and support Aave’s growth and development with a risk conscious approach.	https://governance.aave.com/t/temp-check-allez-labs-risk-provider-proposal-to-aave-dao/17116	6 months	400,000 GHO

As a result, the ARFC Snapshot will have the following voting options:

Option A: Onboard LlamaRisk as Risk Service Provider

Option B: Onboard OpenBlock as Risk Service Provider

Option C: Onboard Allez Labs as Risk Service Provider

Disclaimer

This proposal is made independently by the ACI.

Next Steps

1. If the ARFC snapshot outcome is YAE, escalate to an AIP vote for final confirmation for desired option as potential New Service Provider.

Copyright

Copyright and related rights waived via CC0.