Following a KelpDAO exploit, LlamaRisk submitted two Aave governance proposals: one establishing a four-layer protocol-wide risk standard for all collateral assets, and one upgrading PT asset oracles to Chainlink CRE for improved reliability. Aave founder Stani Kulechov indicated that assets failing the new standard will be off-boarded, signaling a materially tighter risk posture across the protocol.
For Armada's crypto repo desk, Aave's collateral risk framework is a primary external benchmark for haircut and LTV calibration on DeFi-native assets. If Aave tightens or removes collateral eligibility for assets that Armada also accepts, such as restaking tokens or yield-bearing instruments, Armada should proactively reassess those positions. The PT oracle upgrade to Chainlink CRE also raises the bar for price feed quality that counterparties will expect in institutional crypto repo.