Aave's Risk Framework
Peaking at more than a billion USD of locked assets, Decentralized Finance (DeFi) has boomed in recent years. Aave Protocol launched on Ethereum mainnet in January 2020. The money market size now surpasses 40 million USD allowing users to participate as depositors or borrowers.
The industry has been developing risk frameworks to form industry standards to manage the risks emerging from our hyperconnected ecosystem. Aave holds security at its core, undergoing audits by Open Zeppelin Security and Trail of Bits, and publishing monthly Security Reports on Medium.
The following documentation analyses the fundamental risks of the protocol and describes the processes in place to mitigate them.
If you have any questions, join the Aave community Discord server; our team and members of the community look forward to helping you understand Aave's risks and risk management procedures.
