February 2024
Summary
Sharing a recap of Gauntlet’s market risk management work with Compound in February 2024. See below for this past month’s work summary and a preview of what’s coming up in March 2024.
Highlights
- Executed V2 Deprecation Phase 9 and posted recommendations for Phase 10
- Provided initial asset listing recommendations for Ethereum v3 USDT, USDC Native Base, and Optimism v3 USDT & USDC comets
- Published weekly market updates for all Compound comets: Arbitrum USDC.e, Arbitrum Native USDC, Polygon USDC.e, Ethereum USDC, Ethereum ETH, BASE USDbC, BASE WETH
| Category | Work Completed | Commentary |
|---|---|---|
| Quantitative Research | Continuous research on Incentive Optimization for Compound’s incentive rewards |
Incentives are used to bootstrap liquidity, promote growth, and facilitate decentralized governance growth. |
| Recommendations | Executed V2 deprecation Phase 9, posted recommendations for Phase 10 Executed risk recommendations for Ethereum v3 USDC Risk recommendations for Base v3 and Arbitrum v3 Initial parameter recommendations for USDC Native Base Comet Risk recommendations for Ethereum v3 USDC TargetReserves recommendations for Ethereum v3 USDC Initial asset listing recommendations for Ethereum v3 USDT Initial asset listing recommendations for Optimism v3 USDT & USDC comets |
Daily risk simulations and stress tests. |
| Risk Modeling and Incentive Optimization | Executed Base rewards contract top-up Analysis of Exchange vs Market rate price feeds Incentives recommendations for native USDC Base comet Polygon rewards contract top-up Published weekly market updates for all Compound comets: Arbitrum USDC.e, Arbitrum Native USDC, Polygon USDC.e, Ethereum USDC, Ethereum ETH, BASE USDbC, BASE WETH |
Risk modeling to provide insight into new market launches for Compound as well as protocol-wide initiatives. Data-driven incentive optimization to help bootstrap liquidity, promote growth and facilitate decentralized governance growth. |
| Feature Upgrades | Gauntlet’s Compound Risk Dashboard showcases and visualizes the market health and conditions of every comet on Compound, including data on top positions, assets, utilization rate, concentration, returns, liquidations, account health, and more. | Gauntlet continuously upgrades its product offering. |
| Risk Alerts | Continued updates from our alerting platform |
Risk monitoring and alerting is part of Gauntlet’s market risk management offering. |
Upcoming Selected Work
- Execute V2 Deprecation (Phase 10)
- Interest rate recommendations for all Compound comets
- Continuous monitoring of utilization levels and supply cap usage across all Compound comets
- Continue support of community initiatives and market alerts
We are happy to answer any questions or hear any feedback from the community.