June 2023
Summary
Sharing a recap of Gauntlet’s market risk management work with Compound in June 2023. See below for this past month’s work summary and a preview of what’s coming up in July.
| Category | Work Completed | Commmentary |
|---|---|---|
| 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 Phase 4 of the Migration proposal Implemented interest rate curve and incentive changes on Compound v3 USDC Proposal to pause supply for cAAVE, cCOMP, cLINK, cSUSHI, and cUNI on Compound V2 Proposal to increase UNI supply cap on V3 Ethereum USDC Updates on ARB supply cap on Arbitrum USDC.e Parameter Recommendations for stMATIC and MatixX |
Daily risk simulations and stress tests. |
| Risk Modeling and Incentive Optimization | Compound Incentive and Revenue Analytics Migration Update Topped up COMP Rewards on Compound V3 Mainnet Contract |
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 | Added Correlated Liquidation Curves for V2 assets on the Gauntlet Compound Dashboard |
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 offfering. |
Highlights
- Executed phase 4 of the migration proposal.
- Implemented interest rate curve and incentive changes on Compound v3 USDC.
- Posted proposal and poll to pause supply for tail assets on Compound v2.
- Record high inflow and borrow on Compound V3 in June, one month since the formal kickoff of Gauntlet’s Incentive Optimization efforts.
- Improved UX of Compound Dashboard.
Upcoming Selected Work
- Provide incentive recommendations to support Compound’s launches on new chains such as Base.
- 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.