November 2023
Summary
Sharing a recap of Gauntlet’s market risk management work with Compound in November 2023. See below for this past month’s work summary and a preview of what’s coming up in December.
Highlights
- Executed V2 Deprecation Phase 4 and Phase 5, posted V2 Deprecation Phase 6
- Provided interest rate curve recommendations for Base v3 WETH, Ethereum v3 WETH, and Polygon v3 USDC.e.
- 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 4 and Phase 5, posted V2 Deprecation Phase 6 Interest Rate Curve recommendations on Base v3 WETH ARB and WBTC supply cap recommendations on Arbitrum Native USDC Interest Rate Curve recommendations on Ethereum v3 WETH Interest Rate Curve recommendations on Polygon v3 USDC.e |
Daily risk simulations and stress tests. |
| Risk Modeling and Incentive Optimization | Reward recommendations on Ethereum v3 USDC comet Polygon rewards contract top-up recommendations Top-up COMP Rewards on Compound V3 mainnet contract 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 | 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. Customized the market health pages for V3 markets on the Gauntlet Compound Risk Dashboard to focus the supply chart only on collateral assets, and the borrow chart on base assets. |
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
- Publish V2 Deprecation (Phase 6) proposal on-chain
- On-chain proposal for Interest Rate Curve recommendations on Ethereum v3 WETH comet and Reward recommendations on Ethereum v3 USDC comet and Polygon rewards contract top-up 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.