October 2023
Summary
Sharing a recap of Gauntlet’s market risk management work with Aave in October 2023. See below for this past month’s work summary and a preview of what’s coming up in November.
Highlights
- Published research and analysis on GHO Stability and Peg Community Plan
- Risk monitoring and firefighting for the 04/11/2023 security incident, provided Aave v2/v3 security incident risk analysis and parameter recommendations on the Grace Sentinel
- Provided initial parameter recommendations for CRVUSD, stEUR, WOO, wstETH, and Optimism Native USDC across V3 markets
- Launched an Updated Account Explorer feature on the Gauntlet Aave Dashboard
- Implementation in progress for Lever B of the Synchronicity Price Adapter “Killswitch” Functionality for LST Emode in collaboration with BGD
| Category | Work Completed | Commmentary |
|---|---|---|
| Quantitative Research | Research and analysis on 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 | WSTETH and BAL borrow and supply cap recommendations on V3 Ethereum Increase Uopt for stablecoins on all V3 markets and RF on V2 Ethereum Lower stMATIC, MaticX non-emode LT on Polygon v3 pt 2 Supply and borrow caps for agEUR and jEUR on V3 Polygon Increase cbETH supply cap on V3 Base Re-enable CRV borrowing on V3 Ethereum/Polygon WETH interest rate recommendations on V3 Ethereum executed |
Daily risk simulations and stress tests |
| Risk Modeling | CRVUSD onboarding parameter recommendations on V3 Ethereum stEUR onboarding parameter recommendations on V3 Ethereum Increase stablecoin optimal borrow rates across V2 and V3 GHO borrow rate recommendations MKR, RPL, rETH, WAVAX, METIS caps recommendations across V3 markets Lower WMATIC slope 1 on V3 Polygon Increase rETH borrow caps on V3 Ethereum WOO onboarding parameter recommendations on V3 Arbitrum wstETH and rETH supply and borrow cap recommendations on V3 Arbitrum Supply and borrow caps recommendations on V3 Gnosis wstETH onboarding parameter recommendations on V3 Base Native USDC onboarding parameter recommendations on V3 Optimism |
Firefighting during unique market stress events. Risk modeling to provide insight into the risk/reward tradeoffs of Aave initiatives |
| Risk Monitoring and Alerting | Risk monitoring and firefighting for the 04/11/2023 security incident, provided Aave v2/v3 security incident risk analysis and parameter recommendations on the Grace Sentinel Following the Aave V2 Markets Deprecation Plan and executed V2 Ethereum LT Reductions 10.27.2023 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 an Updated Account Explorer feature on the Gauntlet Aave Dashboard to surface account level data for all markets on our dashboard. The feature includes visualizations and a table with key datapoints about the accounts. Interactive filters and a search bar allow anyone to do their own analysis of positions on the protocol. | Gauntlet continuously upgrades its product offering |
Upcoming Selected Work
- AIPs for MAI/MIMATIC Deprecation, stMatic/MatcX non-emode LT reduction, Stablecoin interest rate recommendations
- 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.