Gauntlet Monthly Updates

Proposals
1

January 2023

Summary

Sharing a recap of Gauntlet’s market risk management work with Compound in January 2023. See below for this past month’s work summary and a preview of what’s coming up in February.

Category Work Completed Commmentary
Quantitative Research Interest rate curve framework for Compound

Over the last several months, Gauntlet has conducted quantitative research on optimizing interest rate curves and applied to new Comet markets
Recommendations 2 sets of Compound V2 Recommendations

2 sets of Compound V3 USDC Comet Recommendations

1 set of Compound V3 wETH Comet Recommendation		 Daily risk simulations and stress tests
Risk Modeling Initial parameter recommendations on Compound V3 wETH Comet, including supply cap, CF, LCF, LF, and Interest Rate Curves

Conduct analysis and provide strategies for the community’s Migration plan from V2 to V3

Risk modeling to provide insight into new market launches for Compound as well as protocol-wide initiatives
Other Presented risk updates on 2 community calls

Community and contributor support



Highlights

  • Provide initial risk parameterization analysis for the launch of Compound V3 wETH Comet
  • Conduct quantitative research on interest rate curves, and provide interest rate curve parameterization for Compound V3 wETH Comet
  • Conduct analyses to provide migration plans for the community’s transition from V2 to V3
  • Ongoing daily simulation analyses and stress tests of Compound V2 and Compound V3 USDC Comet, including several collateral factor decreases for Compound V2 to mitigate outsized market risk

Upcoming Selected Work

  • Conduct market risk analysis to support Compound’s launches on new chains such as Polygon
  • Publish detailed migration plan from V2 to V3 following the community’s preference
  • Launch wETH Comet Risk Simulation Dashboard

Happy to answer any questions or hear any feedback - feel free to comment below.

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2

Appreciate this monthly report. Helps community understand what Gauntlet has been up to. Keep them coming!

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3

February 2023

Summary

Sharing a recap of Gauntlet’s market risk management work with Compound in February 2023. See below for this past month’s work summary and a preview of what’s coming up.

Category Work Completed Commmentary
Quantitative Research Initial recommendations for USDC Comet on Polygon market

Gauntlet has conducted quantitative research on risk management for non-ETH chains and has provided initial parameter recommendations for the USDC Comet on Polygon to support Compound’s multi-chain strategy.
Recommendations 3 sets of Compound V3 wETH Comet Recommendations

2 sets of Compound V2 Recommendations

2 sets of Compound V3 USDC Comet Recommendations		 Daily risk simulations and stress tests
Risk Modeling Initial parameter recommendations on Compound V3 USDC Comet on Polygon, including supply cap, CF, LCF, LF, and Interest Rate Curves

Phase 1 of Compound Migration Plan from V2 to V3 - after detailed research, and after 3 different sets of recommendation options provided to the community following feedback, Gauntlet has published a proposal for migrating users from V2 to V3. The proposal has been approved and passed by the community.

Risk modeling to provide insight into new market launches for Compound as well as protocol-wide initiatives
Other Presented risk updates on 2 community calls

Community and contributor support



Highlights

  • Published updated detailed migration plan from V2 to V3 following the community’s preference. The migration plan includes parameter changes on V2 as well as V3 USDC Comet.
  • Provide initial risk parameterization analysis for the launch of Compound V3 USDC Comet on Polygon to support Compound’s multi-chain strategy.
  • Ongoing daily simulation analyses and stress tests of Compound V2, Compound V3 USDC Comet, and Compound V3 wETH Comet.
  • Provide supply cap updates on V3 wETH Comet to enable sustainable growth while mitigating outsized market risk.

Upcoming Selected Work

  • Conduct market risk analysis to support Compound’s launch on Optimism.
  • Launch wETH Comet Risk Simulation Dashboard.

We are happy to answer any questions or hear any feedback from the community.

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