Gauntlet Monthly Updates

May 2023


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


  • 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.