Introduction

The composability of the DeFi ecosystem implies risks from an individual component flow into all dependent systems. Currencies are at the heart of the Aave protocol as they enable operations and hold the assets and liabilities of the protocol.

This documentation, developed by the Risk Management Team, focuses on the risk assessment for currencies supported by Aave. The risk assessment considers market, counter-party and smart contract risks for the currencies selected for Aave protocol, aiming to contribute to higher risk standards within DeFi.