November 2023
Summary
Sharing a recap of Gauntlet’s market risk management work with Aave in November 2023. See below for this past month’s work summary and a preview of what’s coming up in December.
Highlights
- Continuous community discussion on GHO Stability and Peg Community Plan
- Provided GSM Launch Conditions and Parameter Recommendations
- Provided initial parameter recommendations for ETHx and sfrxETH
- Launched Aave V3 Gnosis 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 | 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 | Increase USDC supply cap on V3 Arbitrum Re-enable CRV borrowing on V3 Ethereum and Polygon Lower stMATIC and MaticX non-emode LT Cap Recommendations for V3 Polygon Risk Analysis on V3 GnosisChain Increase USDC borrow and supply cap on V3 Arbitrum Interest Rate Recommendations for stablecoins across all Aave pools GSM Launch Conditions and Parameter Recommendations |
Daily risk simulations and stress tests |
| Risk Modeling | Increase wstETH supply cap on V3 Ethereum Supply and borrow caps for V3 GnosisChain Upgrade Safety Module with stkGHO Initial Parameter Recommendations for ETHx on V3 Ethereum Initial Parameter Recommendations for sfrxETH on V3 Ethereum Recommendations for native USDC on V3 markets Increase LINK cap on V3 Arbitrum |
Firefighting during unique market stress events. Risk modeling to provide insight into the risk/reward tradeoffs of Aave initiatives |
| Risk Monitoring and Alerting | Recommendations for KNC after KyberSwap DEX security breach on 11.02.2023 Following the Aave V2 Markets Deprecation Plan and executed V2 Ethereum Deprecation 11.20.2023 and posted V2 Ethereum and Polygon LT Reductions 12.04.2023 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 the Aave V3 Gnosis Dashboard 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
- 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.