September 2023
Summary
Sharing a recap of Gauntlet’s market risk management work with Aave in September 2023. See below for this past month’s work summary and a preview of what’s coming up in October.
Highlights
| Category |
Work Completed |
Commmentary |
| Quantitative Research |
Implementation in progress for 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 |
Lower stMATIC, MaticX non-emode LT
Aave V2 Markets Deprecation Plan
V2 Ethereum Deprecation 10.03.2023
Interest Rate Recommendations for WETH (slope 1 and base rate)
Borrow and supply cap recommendations on Metis, Arbitrum, Optimism, Ethereum v3
Arbitrum USDC Migration
MAI/MIMATIC Deprecation
Slope 1 and UOpt recommendations for WETH on V3 Ethereum
Increase borrow and supply caps for WSTETH and BAL on V3 Ethereum
|
Daily risk simulations and stress tests |
| Risk Modeling |
Increase supply caps for LINK on Optimism, LUSD on Arbitrum, METIS on Metis
Increase debt ceiling for MKR
Initial parameter recommendations for STG on Ethereum V3
TUSD Offboarding Plan Part II parameter recommendations
Initial risk analysis and parameter recommendations for V3 on GnosisChain
Initial parameter recommendations for V3 zkEVM L2
Initial parameter recommendations for KNC on Ethereum V3
Initial parameter recommendations for FXS on Ethereum V3
Increase supply cap for LUSD and supply and borrow cap for USDT
Increase supply and borrow caps on V3 Metis, Arbitrum
Recommendations on GHO borrow rate
Increase RPL and METIS borrow caps on V3 Metis, Ethereum
Initial parameter recommendations for sDAI on Gnosis Pool V3
|
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 Aave V2 Markets Deprecation Plan and executed V2 Ethereum Deprecation 10.03.2023
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 Aave V3 Base dashboard |
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 Aave V2 Markets 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.
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