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.
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