January 2024
Summary
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.
Highlights
| 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.
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