Gauntlet Monthly Updates

Proposals
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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