Gauntlet Monthly Updates

March 2023


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


  • 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.