Gauntlet Monthly Updates

January 2023

Summary

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

Category Work Completed Commmentary
Quantitative Research Interest rate curve framework for the Aave protocol

Published Borrow and Supply cap methodology for Aave V3
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 Recommendations

Optimism Cap Additions
Daily risk simulations and stress tests
Risk Modeling Risk Analyses on Shanghai Upgrade

cbETH Listing Analysis on V3 ETH

rETH Listing Analysis on V3 ETH

Analysis on Llama CRV Interest Rate Upgrades

wstETH Listing Analysis on V3 OP

jEUR Incident Analysis

Risk modeling to provide insight into the risk/reward tradeoffs of Aave initiatives
Risk Monitoring and Alerting GUSD Utilization

Whale Liquidation

Position Near Liquidation
Gauntlet’s risk monitoring platform alerts the community of risk updates
Other IR Curve Corrections on wETH IR Curves

Community Bug Bounty
Community and contributor support



Highlights

  • Aligned with risk-related service providers and stakeholders on key priorities for the quarter. Setup recurring syncs and shared processes with Chaos and Llama to collaborate more closely on risk-related initiatives, including recommendations on asset listings
  • After conducting quantitative research on interest rate curves, provide framework to the Aave community for optimizing interest rate curves. Published recommendations that were approved by the community on-chain
  • Updated incident response process - completed setup for internal alerts, escalation, investigation, and monitoring processes
  • After conducting quantitative research, published our borrow and supply cap methodology for Aave V3
  • Conducted market risk analysis in preparation for Shanghai update

Upcoming Selected Work

  • Launching updated Risk Simulation Dashboard
  • Publishing Gauntlet holistic risk parameter methodology - guiding principles, overall methodology, etc
  • Aligning with stakeholders on communication channels for sensitive market alerts
  • Launching v3 Polygon integration into our risk simulation platform

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

8 Likes

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.

4 Likes

Great Job!

Gauntlet has been providing immense value to Aave, and we are excited to see how this value scales to other Aave Initiatives, such as GHO and its accompanying operational aspects.

2 Likes

@Pauljlei hello.

i am not sure we need updates on the forum // why do we keep on posting these?

it leads to bloat, which my mother suffered from.

@Kene_StableLab is your comment productive, or a mere appetite for desirability?

this sort of “update” was made famous by a team desperate for attention.

why purge our home?

we know you’re whereabouts // it is an issue when we don’t.

to my beloved Aave DAO. speak with your actions, not your words.

carefully, watching.

1 Like

March 2023

Summary

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

Category Work Completed Commmentary
Quantitative Research Gauntlet E-Mode methodology for Aave V3

Gauntlet Isolation Mode methodology for Aave V3

Initial analysis on GHO launch parameters
Published methodology and community votes to help define the protocol’s approach for E-Mode and Isolation Mode

Support GHO launch with initial analysis and recommendations
Recommendations Risk recommendations to recalibrate all Aave markets following changed market conditions after the USDC volatility

LSD cap updates on V3 ETH

V3 Arbitrum updates

Daily risk simulations and stress tests
Risk Modeling USDC volatility firefighting, including risk modeling, risk recommendation triggers, continuous monitoring, and post-mortem analysis

Implement interest rate curve optimizations covering all V3 markets

Freeze markets on Aave V2 AMM market as a result of low liquidity and usage

Provide risk analysis for potential Aave launch on Celo

Aave community plan for V2 → V3 migration

BUSD offloading risk analysis

Provide risk analysis for potential Aave launch on Metis

GMX asset listing on Aave V3 Arbitrum risk analysis

MaticX on Polygon V3 risk analysis

BAL IR curve update analysis

stMatic analysis

cbETH on V3 ETH analysis

GHST on Polygon V3 analysis

agEUR on Aave V3 risk analysis

Firefighting during unique market stress events. Risk modeling to provide insight into the risk/reward tradeoffs of Aave initiatives
Risk Monitoring and Alerting Launched Aave market alerts Telegram Channel, open to the public, for alert updates from Gauntlet’s monitoring platform

BTC.b supply

MaticX and stMatic cap updates

Position Liquidation on Aave V2

Position near liquidation

stETH liquidation

EURS utilization

SUSHI cap usage

stMatic cap usage

Arbitrum V3 liquidation

wstETH cap usage

wAVAX cap usage
Gauntlet’s risk monitoring platform alerts the community of risk updates



Highlights

  • Firefighting when USDC lost its equivalence to the dollar. Provided risk modeling to inform risk mitigation recommendations and price triggers while communicating closely with Aave Guardian and community. Provided post-mortem analysis to the Aave community.
  • After conducting research on Aave V3 dynamics, published V3 E-Mode and V3 Isolation Mode methodology, with weeks of community discussion for protocol alignment.
  • Provided risk analysis for GHO launch.
  • Implemented interest rate curve optimizations covering all Aave V3 markets. This follows Gauntlet’s interest rate curve changes for Aave V2.
  • Continuous market alerts from Gauntlet’s risk monitoring platform

Upcoming Selected Work

  • Implement E-Mode recommendations per the community’s preference
  • Provide risk analysis on Aave’s cross-chain launches
  • Continued support of community initiatives and market alerts

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

3 Likes

April 2023

Summary

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

Category Work Completed Commmentary
Quantitative Research Updated Value at Risk (VaR) Methodology from Gauntlet

Additional research and recommendations on GHO launch parameters

Aligned with community on Aave V3 Stablecoin E-mode methodology

Conducted research and provide methodology for Aave V3 LST E-Mode methodology

Implement Aave Isolation Mode recommendations following Gauntlet’s methodology
Published updated, improved Value at Risk methodology after months of research and development

Provided methodology for LST E-Mode and Stablecoin E-Mode

Continuous support for GHO launch with additional analysis and recommendations
Recommendations Freeze G-UNI DAI/USDC and G-UNI USDC/USDT in Aave V2 AMM Market

Deprecate Aave V2 AMM Market

Aave V2 Interest Rate Curve Recommendations

Implement V3 AVAX and V3 ETH parameter changes following changed market conditions after USDC non-parity

V3 Polygon and V3 Arbitrum parameter updates

EURS Cap Update

Implement V3 Arbitrum updates

V3 Interest Rate Curve recommendations

Implement wstETH on V3 Arbitrum updates

Daily risk simulations and stress tests
Risk Modeling Risk analysis and recommendations for Aave launch on BNB

Risk analysis and recommendations for Aave launch on zkSync Era

Add support for wstETH on Polygon V3

stMatic Supply Cap on Polygon V3

MaticX Supply Cap on Polygon V3

Safety Module

wMatic Supply Cap

BAL Borrow Cap

Enable USDT as collateral on V3 AVAX

Discussion to initiate ETH Correlated E-Mode on Optimism

Firefighting during unique market stress events. Risk modeling to provide insight into the risk/reward tradeoffs of Aave initiatives
Risk Monitoring and Alerting 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 Avalanche V2 on Gauntlet’s Risk Dashboard Gauntlet continuously upgrades its product offering



Highlights

  • After months of research and development, published Updated Value at Risk (VaR). The new methodology is more consistent, reliable, and explainable.
  • Published LST E-mode methodology and aligned with the community on methodology for Stablecoin E-mode.
  • Additional analysis for GHO initial parameterization and path to scale.
  • To derisk the protocol, froze assets on Aave V2 AMM market, and aligned with the community to deprecate the market, given the risk/reward tradeoffs.
  • Provided analysis and recommendations for Aave’s launch on BNB and zkSync Era. Gauntlet will continue to support Aave’s deployments across chains.
  • Launched Aave V2 Risk Dashboard. At this point, Gauntlet has launched risk dashboards for all (undeprecated) Aave markets, other than Metis that just recently launched.

Upcoming Selected Work

  • Implement Stablecoin E-Mode recommendations on-chain
  • Deprecate V2 AMM market via on-chain proposal
  • Implement V2 and V3 Interest Rate Curve changes
  • Provide risk analysis on Aave’s cross-chain launches
  • Continued support of community initiatives and market alerts

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

2 Likes

May 2023

Summary

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

Category Work Completed Commmentary
Quantitative Research Conducted research and proposed further improvements to CSPA2.0 with Synchronicity Price Adapter “Killswitch” Functionality for LST Emode

Conducted research with BGD on LST Oracle risk and Chainlink Synchronicity Price Adapter 2.0

V3 LST E-Mode recommendations implemented on-chain
Published Synchronicity Price Adapter “Killswitch” Functionality for LST Emode after months of research and development

In-depth analysis on LST Oracle risk and additional solution design

Continuous support for GHO launch with additional analysis and recommendations
Recommendations V2 and V3 Interest Rate Curve changes implemented

Deprecate Aave V2 AMM Market AIP Live

Initiate ETH Correlated E-mode on Optimism

Optimism Bedrock Update

Increased LUSD Borrow Cap

Recommendations for BAL and EURS in Polygon V3 and Arbitrum V3 implemented

Risk Parameter Updates for Arbitrum V3

Risk Parameter Updates for Avalanche V3

Daily risk simulations and stress tests
Risk Modeling Aave V3 Deployment on Base

Increase supply caps for LSTs on Aave V3

Add fUSDC to Ethereum V3

Polygon v3 Supply Cap Update

Optimism V3 Supply Cap Update

Implemented wMATIC Supply & Borrow Cap Increase Polygon V3

Add rETH to Arbitrum V3 Liquidity Pool

Increase stMATIC SupplyCap

Add ARB to Arbitrum V3

Add SUSHI to Aave V3

Add RPL to Ethereum V3

Add FRAX Arbitrum V3

Freeze MAI from Optimism and Arbitrum V3

Firefighting during unique market stress events. Risk modeling to provide insight into the risk/reward tradeoffs of Aave initiatives
Risk Monitoring and Alerting 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 Metis V3 on Gauntlet’s Risk Dashboard

Addition of Cap Usage Graphs for borrow and supply caps where applicable (example)

Risk Dashboard usability improvements, including full screen graphs, direct links to graphs
Gauntlet continuously upgrades its product offering



Highlights

  • After months of research and development, published Synchronicity Price Adapter “Killswitch” Functionality for LST Emode as a potential mechanism to further improve on CSPA 2.0.
  • In conjunction with BGD Labs, published research and analysis on important improvement to current pricing mechanisms for LSTs on Aave using the Chainlink Synchronicity Price Adapter (CSPA).
  • Additional analysis for GHO initial parameterization and path to scale.
  • Executed Aave’s first Risk Steward for increasing wMATIC supply and borrow caps.
  • Implemented V2 and V3 Interest Rate Curve Changes.
  • Provided analysis and recommendations for adding ARB, SUSHI, RPL, FRAX, fUSDC. Gauntlet will continue to provide analysis for additions of new assets on Aave.

Upcoming Selected Work

  • Gather community feedback and proceed forward on Synchronicity Price Adapter “Killswitch” Functionality for LST Emode
  • Deprecate V2 AMM Market
  • Implement wstETH supply cap increases on Optimism and Arbitrum via Risk Steward
  • Provide risk analysis on Aave’s launches across chains
  • Continued support of community initiatives and market alerts

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

June 2023

Summary

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

Category Work Completed Commmentary
Quantitative Research Proposed 3 options with 4 levers for Synchronicity Price Adapter “Killswitch” Functionality for LST Emode

Gathered community feedback and proposed 3 options with 4 levers for Synchronicity Price Adapter “Killswitch” Functionality for LST Emode.
Recommendations Deprecated Aave V2 AMM

TUSD Offboarding Plan in collaboration with ACI

Lower TUSD LT and LTV on Ethereum V2

Freeze TUSD on Ethereum V2

Increase Supply Cap for rETH on Arbitrum v3, BTC.b on Avalanche v3, and wstETH on Optimism v3

Supply Cap Updates for BAL and LINK on Ethereum V3 and OP on Optimism V3

Risk Parameter Updates for Ethereum V2, V3, and Arbitrum V3

Increase WETH Borrow Cap on Metis V3

Increase Supply Cap for AAVE, LINK on Arbitrum V3 and LINK and DPI on Polygon V3

Recommendations and additional analysis on CRV on Aave V2

Increase wstETH Supply Cap on Optimism V3

Daily risk simulations and stress tests
Risk Modeling Add GMX to Arbitrum V3

Add rETH to Optimism V3

Increase wstETH Supply Cap on Ethereum and Arbitrum V3

Increase WETH and METIS Supply Caps and WETH Borrow Cap on Metis V3

Increase rETH Supply and Borrow Cap

Aave V3 Deployment on BNB Chain

USDT Risk Parameters Update Ethereum V3

Increase WETH Borrow Cap on Arbitrum V3

Add native USDC to Arbitrum V3

Increase sAVAX Supply Cap on Avalanche V3

Increase wstETH Supply Cap on Arbitrum V3

Firefighting during unique market stress events. Risk modeling to provide insight into the risk/reward tradeoffs of Aave initiatives
Risk Monitoring and Alerting 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 Added Correlated Liquidation Curve Graphs to the Gauntlet Aave Dashboard, which model likely liquidations at various price drops of the collateral asset, taking into account correlated price drops in other collateral assets as part of the simulated market downturn event

Added Local and Global Liquidity Graphs to the Gauntlet Aave Dashboard, which provide more transparency in the liquidity data that informs our recs
Gauntlet continuously upgrades its product offering



Highlights

Upcoming Selected Work

  • Proceed forward with snapshot for 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
  • Continued support of community initiatives and market alerts

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

1 Like

July 2023

Summary

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

Highlights

Category Work Completed Commmentary
Quantitative Research Option 3 (Lever B) of the Synchronicity Price Adapter “Killswitch” Functionality for LST Emode was approved in snapshot

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 CRV LTV → 0 on V2 Ethereum

CRV LT, LTV, debt ceiling on V3 Ethereum and CRV LT, LTV on V3 Polygon

Freeze CRV on V2 Ethereum

CRV Deprecation Schedule

TUSD Offboarding Plan in collaboration with ACI

Supply Cap Increase for V3 Avalanche, Arbitrum, Optimism

Risk Parameter Updates for V3 Ethereum, Arbitrum, V2 Ethereum

WMATIC supply cap increase (canceled)

Refreshed recommendations for Aave Base deployment from initial recommendations

Increase USDT supply caps on V3 Ethereum

SUSHI and rETH Borrow and supply cap increase on V3 Ethereum and Polygon

Daily risk simulations and stress tests
Risk Modeling 2023-7-30 – CRV market updates and recommendation to cancel AIP 280

2023-8-1 — CRV risk conditions and recommendations to set CRV LTV->0 and freeze CRV

2023-8-4 — Additional analysis and data on CRV liquidity, Aave TVL, withdrawals, migration and RF adjustment

Post Mortem: Curve

Increase WETH and METIS supply cap on V3 Metis

Increase CRV supply caps on V3 Polygon

Increase wstETH supply cap on V3 Ethereum

Increase RPL supply cap on V3 Ethereum

Increase WETH borrow/supply cap and METIS supply cap on V3 Metis

Analysis of Pyth as a secondary oracle solution on V3 Optimism

Increase wstETH supply cap on V3 Arbitrum

Analysis on GHO Stability Module

Firefighting during unique market stress events. Risk modeling to provide insight into the risk/reward tradeoffs of Aave initiatives
Risk Monitoring and Alerting Continuous Aave market updates in Telegram Channel, open to the public, for alerts from Gauntlet’s monitoring platformContinuous 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 Improved data freshness of the Gauntlet platform and alerts system. Gauntlet continuously upgrades its product offering

Upcoming Selected Work

  • Implementation of Option 3 (Lever B) of Synchronicity Price Adapter “Killswitch” Functionality for LST Emode
  • Recommendations for CRV risk mitigation and deprecation plans
  • 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.

1 Like

August 2023

Summary

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

Highlights

Category Work Completed Commmentary
Quantitative Research Kicked off implementation of 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 Freeze CRV on Aave V2 Ethereum

Freeze MAI and set MAI LTV→ 0

Set MAI isolation mode debt ceiling to 0 on V3 Arbitrum, Optimism, Avalanche, and Polygon

rETH and LUSD borrow and supply cap increase on Ethereum and Arbitrum

Interest rate recommendations for WETH and WMATIC on V2 and V3

Recommendation for WETH Uopt on V3 Ethereum

Daily risk simulations and stress tests
Risk Modeling Increase borrow cap for USDT and supply cap for MKR on V3 Ethereum

Parameters for sDAI onboarding

Parameter recommendations for V3 Deployment on Celo

Analysis on automated IR mechanisms

Analysis on wGHO on Aave V3

Recommendations for GHO stability module

Increase borrow cap for LUSD and rETH on V3 Ethereum

Parameters for enabling USDT as collateral on V3 Avalanche

OP risk parameters on V3 Optimism

Increase GHO Borrow Rate

RPL, wstETH, LUSD, LINK, cbETH cap changes

AAVE, METIS, DPI cap changes

Recommendations on WSTETH and STMATIC cap changes

MKR, RPL, UNI and cbETH cap changes

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 CRV Deprecation bi-weekly LT reduction plan and posted LT reduction recommendations on 8/21, 9/5, 9/13.

Blameless Post Mortem: Curve

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 Added a new feature displaying interest rate curves on the recommendations page of the Gauntlet Aave dashboard, showing the expected impact of the recommendations. Note: these will only appear when a recommendation is live. Example on V3 Ethereum here.

Added filters to all charts on the Gauntlet Aave dashboard, enabling users to select one or multiple assets to be represented in a clean, focused view.
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 CRV V2 Ethereum 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.

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.

1 Like

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

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

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

4 Likes

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

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.

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

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.