December 2023
Summary
Sharing a recap of Gauntlet’s market risk management work with Aave in December 2023. See below for this past month’s work summary and a preview of what’s coming up in January 2024.
Highlights
- Posted GSM Launch Parameter Recommendations
- Posted Flashloan Analysis and Recommendations
- Continuous community discussion on GHO Stability and Peg Community Plan
- Launched Slippage Curve Charts on Gauntlet’s risk 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 | Flashloan Analysis and Recommendations 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 | GSM Launch Parameter Recommendations Recommendation for MAI/MIMATIC deprecation phase 2 USDT, wstETH supply and borrow cap recommendations on V3 Ethereum, Polygon, Arbitrum m.USDC, m.USDT, METIS supply and borrow cap recommendations on V3 Metis OP borrow cap recommendation on V3 Optimism V2 Ethereum LT Reductions |
Daily risk simulations and stress tests |
| Risk Modeling | USDT risk parameter recommendations sDAI and GNO v3 Gnosis supply cap recommendations Interest rate curve recommendations for stablecoins across all Aave deployments Increase supply cap of USDC.e on V3 Polygon rETH, LINK, CRV caps supply cap recommendations on V3 Ethereum, Arbitrum, Optimism, and Ethereum |
Firefighting during unique market stress events. Risk modeling to provide insight into the risk/reward tradeoffs of Aave initiatives |
| Risk Monitoring and Alerting | Following the Aave V2 Markets Deprecation Plan and executed V2 Ethereum and Polygon LT reductions 12-04-2023 and posted V2 Ethereum LT reductions 01-02-2024 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 Slippage Curve Charts on Gauntlet’s risk dashboard. Covering a wide range of tokens and chains, the charts can be filtered to focus on the collateral safety of each asset on a specific L1 or L2. | 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.