Gauntlet Monthly Updates

[Pauljlei]

February 2023

Summary

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

Category	Work Completed	Commmentary
Quantitative Research	Gauntlet risk dashboard launch for V3 ETH, V3 Polygon, and V3 Arbitrum Interest Rate Curve research for all Aave V3 Markets	After months of simulation battle-testing and integration, we have launched risk dashboards for V3 ETH, V3 Polygon, and V3 Arbitrum Over the last several months, Gauntlet has conducted quantitative research on optimizing interest rate curves and setting borrow/supply caps
Recommendations	2 sets of Aave V2 ETH Recommendations Avalanche and Optimism borrow cap recommendations, following Snapshot Vote 2 sets of Aave V3 OP and V3 Avalanche Recommendations Polygon V3 Recommendations	Daily risk simulations and stress tests
Risk Modeling	Update on Shanghai Upgrade Market Risk implications to Aave CRV Interest Rate Curve Analysis stMatic Supply Cap Update wMatic Supply Cap Analysis cbETH Supply Cap Analysis Detailed Analysis on sfrxETH Asset Listing WAVAX Interest Rate Curve Analysis CRV Asset Listing on V3 ETH Analysis Recommendation on BUSD MaticX V3 Polygon Risk Analysis LUSD Asset Listing on V3 ETH Analysis USDT Listing on V3 ETH Analysis MAI Borrow Cap Analysis on V3 Polygon	Risk modeling to provide insight into the risk/reward tradeoffs of Aave initiatives
Risk Monitoring and Alerting	Supply concentration alerts Whale Supply Position Position Near Liquidation Position Liquidation WETH Borrow Position BAL Supply Cap Usage Borrow and Supply Cap Usage on V3 Polygon and V3 Arbitrum	Gauntlet’s risk monitoring platform alerts the community of risk updates

Highlights

• After months of simulation battle-testing and integration, we have launched risk dashboards for V3 ETH, V3 Polygon, and V3 Arbitrum
• After conducting quantitative research on interest rate curves, extended methodology to cover Aave V3 markets
• After conducting quantitative research, the community has aligned on a risk preference for borrow and supply caps for V3 markets.
• Conducted continued market risk analysis in preparation for Shanghai update

Upcoming Selected Work

• V2 of Risk Simulation Dashboard roll-out
• Aave V3 Migration Analysis
• Continued support of community initiatives and market alerts

We are happy to answer any questions or hear any feedback - feel free to comment below.