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.
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.
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.
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.
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.