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.
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.
7 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.
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.
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.
Highlights
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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.
2 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.
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.
1 Like
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.
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.