Proposal: Dynamic Risk Parameters

This is Ratan, President of Blockchain @ Berkeley.

We believe that Gauntlet has proven itself to be one of the leaders within the DeFi space, and we see incredible value to the Aave community in implementing dynamic/continuous market risk management to enable the protocol to be more effective for Aave users. With the exponential increase in the usage of Aave since v2 began, we believe that having Gauntlet complement the proposed Risk DAO for parameter updates enables both a more balanced and incentive-aligned system for parameter updates. Additionally, we believe that this partnership provides a clear model for collaboration on future initiatives between the Aave ecosystem and DeFi platforms.

Furthermore, we believe that the OpenZeppelin Token Vesting contracts provide a clear methodology by which the Aave community can decide whether or not to continue the program based off of their satisfaction with Gauntlet’s execution.

We really appreciate Gauntlet’s transparency in their reasoning and calculations behind the service fees taken for running the service - and this should be the standard moving forward - as it provides the community with a clear understanding of the sizing of the fee. However, we believe that this proposal would benefit from additional transparency on the Gauntlet side for how these funds will be used (i.e. estimations on Gauntlet team/infrastructure costs, etc.) - as more transparency on DeFi initiatives such as these is always better than less.

As a side note - we also are strong proponents of open developer resources to the DeFi community such as the Risk Dashboard & API and are excited to see this included!

Overall, we’re in strong support of this proposal and are excited to help contribute to shape it alongside the Aave community. Thanks @inkyamze and the rest of the Gauntlet team in putting this together!

4 Likes