Gauntlet Monthly Updates

August 2023


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


Category Work Completed Commmentary
Quantitative Research Kicked off implementation of Lever B of the Synchronicity Price Adapter “Killswitch” Functionality for LST Emode in collaboration with BGD

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 Freeze CRV on Aave V2 Ethereum

Freeze MAI and set MAI LTV→ 0

Set MAI isolation mode debt ceiling to 0 on V3 Arbitrum, Optimism, Avalanche, and Polygon

rETH and LUSD borrow and supply cap increase on Ethereum and Arbitrum

Interest rate recommendations for WETH and WMATIC on V2 and V3

Recommendation for WETH Uopt on V3 Ethereum

Daily risk simulations and stress tests
Risk Modeling Increase borrow cap for USDT and supply cap for MKR on V3 Ethereum

Parameters for sDAI onboarding

Parameter recommendations for V3 Deployment on Celo

Analysis on automated IR mechanisms

Analysis on wGHO on Aave V3

Recommendations for GHO stability module

Increase borrow cap for LUSD and rETH on V3 Ethereum

Parameters for enabling USDT as collateral on V3 Avalanche

OP risk parameters on V3 Optimism

Increase GHO Borrow Rate

RPL, wstETH, LUSD, LINK, cbETH cap changes

AAVE, METIS, DPI cap changes

Recommendations on WSTETH and STMATIC cap changes

MKR, RPL, UNI and cbETH cap changes

Firefighting during unique market stress events. Risk modeling to provide insight into the risk/reward tradeoffs of Aave initiatives
Risk Monitoring and Alerting Aligned on CRV Deprecation bi-weekly LT reduction plan and posted LT reduction recommendations on 8/21, 9/5, 9/13.

Blameless Post Mortem: Curve

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 Added a new feature displaying interest rate curves on the recommendations page of the Gauntlet Aave dashboard, showing the expected impact of the recommendations. Note: these will only appear when a recommendation is live. Example on V3 Ethereum here.

Added filters to all charts on the Gauntlet Aave dashboard, enabling users to select one or multiple assets to be represented in a clean, focused view.
Gauntlet continuously upgrades its product offering

Upcoming Selected Work

  • Implementation of Lever B of the Synchronicity Price Adapter “Killswitch” Functionality for LST Emode
  • Continuous analysis and recommendations for the CRV V2 Ethereum Deprecation Plan
  • 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.