Gauntlet Monthly Updates 2024

January 2024


Sharing a recap of Gauntlet’s market risk management work with Aave in January 2024. See below for this past month’s work summary and a preview of what’s coming up in February 2024.


Category Work Completed Commmentary
Quantitative Research Continuous community discussion on the GHO Stability and Peg Community Plan

Implementation in progress for Lever B of the Synchronicity Price Adapter “Killswitch” Functionality for LST Emode in collaboration with BGD

With extensive research and analysis on stablecoin peg, Gauntlet hopes to help formalize the community discussion around strengthening the GHO peg and organize it into its core components with actionable items with the GHO stability plan.

After months of research and development, the approval of Killswitch Functionality for LST Emode shows the community’s collaborative efforts to continuously innovate Aave in risk management.
Recommendations Scroll risk analysis and initial parameter recommendations

Polygon zkEVM risk analysis and initial parameter recommendations

BNB initial parameter recommendations

Recommendation for MAI/MIMATIC deprecation phase 2

Supply cap recommendation for cbETH in V3 Base

Recommendation to freeze and set LTV to 0 on low-cap Aave v3 Polygon collateral assets

USDT Cap Recommendation on V3 Ethereum

Deprecation Aave V2 AMM Market Phase 2

Increase WETH reserve factor on V3 Ethereum

wstETH Supply Cap Increase on Ethereum V3
Daily risk simulations and stress tests
Risk Modeling Increase caps for BAL, SNX, LINK, MaticX on V3 Ethereum and Arbitrum

Increase caps for USDT and FXS on V3 Ethereum

Increase caps for USDC and ARB on V3 Arbitrum

Increase caps for SNX, ENS, 1INCH on V3 Ethereum

PYUSD onboarding parameter recommendations on V3 Ethereum

stETh and WETH risk parameter recommendations

Analysis on BGD correlated-asset price oracle (CAPO)

fdUSD risk analysis and initial parameter recommendations

sFRAX risk analysis and initial parameter recommendations

Risk Steward Phase 2 recommendations

MaticX supply cap recommendations

Metis onboarding parameter recommendations on V3 Metis
Firefighting during unique market stress events. Risk modeling to provide insight into the risk/reward tradeoffs of Aave initiatives
Risk Monitoring and Alerting Following the Aave V2 Markets Deprecation Plan, executed V2 Ethereum LT Reductions 1/30/2024 and V2 Ethereum LT Reductions 1/2/2024

Continuous Aave market updates in Telegram Channel, open to the public, for alerts from Gauntlet’s monitoring platform

Gauntlet’s risk monitoring platform alerts the community of risk updates
Feature Upgrades Launched the Aave v3 BNB Dashboard and v3 Scroll Dashboard

Weekly V3 Ethereum Market Update

Weekly V3 Polygon Market Update

Weekly V3 Arbitrum Market Update

Weekly V3 Optimism Market Update

Stablecoin IR Curves Update
Gauntlet continuously upgrades its product offering

Upcoming Selected Work

  • Continuous analysis and recommendations for the Aave V2 Markets Deprecation Plan
  • Implement Lever B of Synchronicity Price Adapter “Killswitch” Functionality for LST Emode
  • Provide risk analysis on Aave’s launches across chains
  • Continuously monitor and increase supply caps if recommended via the Risk Steward process
  • Continue support of community initiatives and market alerts

We are happy to answer any questions or hear any feedback - feel free to comment below.