Simple Summary
Gauntlet is excited to announce that we have launched our risk management dashboard for three additional markets on V3: Ethereum, Polygon, and Arbitrum.
With this integration complete, we are now to provide insights from daily simulations for these markets. We are very close to launching a new version of our Dashboards for all markets, and the remaining Aave V2 markets (Polygon and Avalanche) will launch in the new layout.
Context
As outlined in our previous post, V3 represents an exciting step forward for the Aave ecosystem. New mechanisms pose both opportunities and challenges as they relate to managing market risk and optimizing capital efficiency, and we wanted to ensure our simulations were rigorously tested before releasing this dashboard to the public.
V3 markets on our Dashboard contain an additional section on e-Mode pools, including the relative price volatility of assets within the pool, VaR and LaR, as well as correlation matrices demonstrating how closely price movements of assets correlate with others in the pool. A well-correlated pool is usually less risky as loans are less likely to become under-collateralized if the collateral asset price and the borrowed asset price move in tandem.
This release means Gauntlet now has full coverage of Dashboards for V3 markets. Our launch of dashboards for the remaining V2 markets (Polygon and Avalanche) will be sequenced based on TVL, with a target date of March 31st.
Integration Timelines
Based on feedback from the broader Aave community, we are prioritizing integrating new markets over new features. Nonetheless, some development can occur in parallel as we have team members across a range of teams (Data Science, Product, Data Eng, Front-end devs, Platform Eng, and Program Management) dedicated to this engagement.
In addition, we recognize the importance of supporting new markets to the Aave community, and have already provided support to all markets in the following areas:
- New Asset Listings
- Risk modeling for key market events
- Example: ETH merge, Mango-style attack
- Responding to parameter change proposals made by other parties, raising awareness of market risks and other considerations
Integration work continues for the remaining market, per the following schedule
| Market | Asset Listings | Risk Modeling | Dynamic Risk Parameters |
|---|---|---|---|
| v2 ETH | Live | Live | Live |
| Aave Arc | Live | Live | Live |
| v3 AVAX | Live | Live | Live |
| v3 ETH | Live | Live | Live |
| v3 Optimism | Live | Live | Live |
| v3 Polygon | Live | Live | Live |
| v3 Arbitrum | Live | Live | Live |
| v2 Polygon | Live | Live | March 2023 |
| v2 AVAX | Live | Live | March 2023 |
Next Steps
- Launch the new version of the Dashboard for all supported Markets (targeting this week)
- Incorporate remaining V2 markets: Polygon followed by Avalanche
Quick Links
New Gauntlet Risk Dashboards:
Existing Gauntlet Risk Dashboards: