October 2023
Summary
Sharing a recap of Gauntlet’s market risk management work with Compound in October 2023. See below for this past month’s work summary and a preview of what’s coming up in November.
Highlights
- Executed V2 Deprecation (Phase 3) and V2 Deprecation (Phase 4) is on-chain
- Launched the Compound <> BASE Comet Incentives Program
- ETHx initial parameter recommendations on Ethereum V3 WETH Comet
- Published weekly market updates for all Compound comets: Arbitrum USDC, Arbitrum Native USDC, Polygon USDC, Ethereum USDC, Ethereum ETH, BASE USDbC, BASE WETH
| Category | Work Completed | Commentary |
|---|---|---|
| Quantitative Research | Updated USDC - WBTC Oracle Analysis on V3 Ethereum 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 3) Posted V2 Deprecation (Phase 4) and the proposal is on-chain Polygon v3 USDC - MaticX Supply Cap Update (10/20/23) Polygon USDC - Rewards Recommendations Executed on-chain proposal for increasing WBTC supply cap on Arbitrum Native USDC comet Executed WBTC supply caps recommendations on V3 Arbitrum ETHx initial parameter recommendations on Ethereum V3 WETH Comet Base v3 WETH interest rate curve recommendations |
Daily risk simulations and stress tests. |
| Risk Modeling and Incentive Optimization | Launched the Compound <> BASE Comet Incentives Program Top-up COMP Rewards on Compound V3 mainnet contract Published weekly market updates for all Compound comets: Arbitrum USDC, Arbitrum Native USDC, Polygon USDC, 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 | Launched the Updated Compound Account Explorer feature on Gauntlet’s Compound Risk Dashboard to surface account level data for all markets on our dashboard. The feature includes visualizations and a table with key datapoints about the accounts. Interactive filters and a search bar allow anyone to do their own analysis of positions on the protocol. |
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 phase 4 of the Compound V2 deprecation
- On-chain proposal for Base v3 WETH interest rate curve recommendations
- 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.