Gauntlet Monthly Updates

January 2023

Summary

Sharing a recap of Gauntlet’s market risk management work with Aave in January 2023. See below for this past month’s work summary and a preview of what’s coming up in February.

Category Work Completed Commmentary
Quantitative Research Interest rate curve framework for the Aave protocol

Published Borrow and Supply cap methodology for Aave V3
Over the last several months, Gauntlet has conducted quantitative research on optimizing interest rate curves and setting borrow/supply caps
Recommendations 2 sets of Aave V2 ETH Recommendations

Avalanche and Optimism Recommendations

Optimism Cap Additions
Daily risk simulations and stress tests
Risk Modeling Risk Analyses on Shanghai Upgrade

cbETH Listing Analysis on V3 ETH

rETH Listing Analysis on V3 ETH

Analysis on Llama CRV Interest Rate Upgrades

wstETH Listing Analysis on V3 OP

jEUR Incident Analysis

Risk modeling to provide insight into the risk/reward tradeoffs of Aave initiatives
Risk Monitoring and Alerting GUSD Utilization

Whale Liquidation

Position Near Liquidation
Gauntlet’s risk monitoring platform alerts the community of risk updates
Other IR Curve Corrections on wETH IR Curves

Community Bug Bounty
Community and contributor support



Highlights

  • Aligned with risk-related service providers and stakeholders on key priorities for the quarter. Setup recurring syncs and shared processes with Chaos and Llama to collaborate more closely on risk-related initiatives, including recommendations on asset listings
  • After conducting quantitative research on interest rate curves, provide framework to the Aave community for optimizing interest rate curves. Published recommendations that were approved by the community on-chain
  • Updated incident response process - completed setup for internal alerts, escalation, investigation, and monitoring processes
  • After conducting quantitative research, published our borrow and supply cap methodology for Aave V3
  • Conducted market risk analysis in preparation for Shanghai update

Upcoming Selected Work

  • Launching updated Risk Simulation Dashboard
  • Publishing Gauntlet holistic risk parameter methodology - guiding principles, overall methodology, etc
  • Aligning with stakeholders on communication channels for sensitive market alerts
  • Launching v3 Polygon integration into our risk simulation platform

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

6 Likes

February 2023

Summary

Sharing a recap of Gauntlet’s market risk management work with Aave in February 2023. See below for this past month’s work summary and a preview of what’s coming up in March.

Category Work Completed Commmentary
Quantitative Research Gauntlet risk dashboard launch for V3 ETH, V3 Polygon, and V3 Arbitrum

Interest Rate Curve research for all Aave V3 Markets
After months of simulation battle-testing and integration, we have launched risk dashboards for V3 ETH, V3 Polygon, and V3 Arbitrum

Over the last several months, Gauntlet has conducted quantitative research on optimizing interest rate curves and setting borrow/supply caps
Recommendations 2 sets of Aave V2 ETH Recommendations

Avalanche and Optimism borrow cap recommendations, following Snapshot Vote

2 sets of Aave V3 OP and V3 Avalanche Recommendations

Polygon V3 Recommendations
Daily risk simulations and stress tests
Risk Modeling Update on Shanghai Upgrade Market Risk implications to Aave

CRV Interest Rate Curve Analysis

stMatic Supply Cap Update

wMatic Supply Cap Analysis

cbETH Supply Cap Analysis

Detailed Analysis on sfrxETH Asset Listing

WAVAX Interest Rate Curve Analysis

CRV Asset Listing on V3 ETH Analysis

Recommendation on BUSD

MaticX V3 Polygon Risk Analysis

LUSD Asset Listing on V3 ETH Analysis

USDT Listing on V3 ETH Analysis

MAI Borrow Cap Analysis on V3 Polygon
Risk modeling to provide insight into the risk/reward tradeoffs of Aave initiatives
Risk Monitoring and Alerting Supply concentration alerts

Whale Supply Position

Position Near Liquidation

Position Liquidation

WETH Borrow Position

BAL Supply Cap Usage

Borrow and Supply Cap Usage on V3 Polygon and V3 Arbitrum
Gauntlet’s risk monitoring platform alerts the community of risk updates



Highlights

  • After months of simulation battle-testing and integration, we have launched risk dashboards for V3 ETH, V3 Polygon, and V3 Arbitrum
  • After conducting quantitative research on interest rate curves, extended methodology to cover Aave V3 markets
  • After conducting quantitative research, the community has aligned on a risk preference for borrow and supply caps for V3 markets.
  • Conducted continued market risk analysis in preparation for Shanghai update

Upcoming Selected Work

  • V2 of Risk Simulation Dashboard roll-out
  • Aave V3 Migration Analysis
  • Continued support of community initiatives and market alerts

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

3 Likes

Great Job!

Gauntlet has been providing immense value to Aave, and we are excited to see how this value scales to other Aave Initiatives, such as GHO and its accompanying operational aspects.

1 Like

@Pauljlei hello.

i am not sure we need updates on the forum // why do we keep on posting these?

it leads to bloat, which my mother suffered from.

@Kene_StableNode is your comment productive, or a mere appetite for desirability?

this sort of “update” was made famous by a team desperate for attention.

why purge our home?

we know you’re whereabouts // it is an issue when we don’t.

to my beloved Aave DAO. speak with your actions, not your words.

carefully, watching.