Key Takeaways
Risks and Mitigations
We define the set of market risks faced by users of the Aave protocol and analyze the mechanisms that the Aave protocol uses to ensure that it stays solvent.
Simulation Methodology
We explain our methodology for agent-based simulations of the Aave smart contract and define the key scenarios for stress testing.
Results and Analysis
We detail the results of these simulations, providing actuarial assurances for the conditions under which the Aave protocol is insolvent.
