March 2024
Summary
Sharing a recap of Gauntlet’s market risk management work with Compound in March 2024. See below for this past month’s work summary and a preview of what’s coming up in April 2024.
Highlights
- Executed V2 Deprecation Phase 10 (Part 1 & 2)
- Provided initial asset listing recommendations for Arbitrum v3 USDT, gmBTC, ezETH
- 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
Quantitative Research
| 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 10 (Part 1 & 2) Executed targetReserves recommendations for Ethereum v3 USDC Initial asset listing recommendations for Arbitrum v3 USDT Interest rate and reward recommendations for USDC comets Initial asset listing recommendations for gmBTC Interest rate and reward recommendations for Base v3 WETH Interest rate recommendations for Arbitrum USDC Risk recommendations for Polygon USDC.e Initial parameter recommendations for ezETH and Ethereum WETH v3 comet |
Daily risk simulations and stress tests. |
| Risk Modeling and Incentive Optimization | Executed Polygon rewards top-up recommendations Analysis of Exchange vs Market rate price feeds and continued discussions Added historical trends of supply and borrow APR for base assets per v3 market in weekly updates 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 11
- Interest rate, risk parameter recommendations, and incentives optimization 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.