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.
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