August 2023
Summary
Sharing a recap of Gauntlet’s market risk management work with Compound in August 2023. See below for this past month’s work summary and a preview of what’s coming up in September.
Highlights
- Aligned community preference on the Compound V2 deprecation strategy and published on-chain proposal for V2 USDC Deprecation (Phase 1)
- Posted Gauntlet <> Compound Renewal 2023 Proposal
- Proposed Arbitrum v3 native USDC Reward Recommendations
- Executed Ethereum WETH risk parameter, IR curve, and incentive updates
- Published weekly market updates for Ethereum USDC, Polygon USDC, Ethereum WETH, Arbitrum USDC
| Category | Work Completed | Commmentary |
|---|---|---|
| Quantitative Research | Analysis on WBTC price feed for Ethereum USDC Market Continuous research on Incentive Optimization for Compound’s incentive rewards |
Incentives are used to bootstrap liquidity, promote growth, and facilitate decentralized governance growth. |
| Recommendations | Aligned community preference on the Compound V2 deprecation strategy and passed on-chain proposal for V2 USDC Deprecation (Phase 1). Proposed Arbitrum V3 native USDC Reward Recommendations Executed Polygon USDC risk parameter updates Executed Ethereum WETH risk parameter, IR curve, and incentive updates Executed Arbitrum USDC rewards updates |
Daily risk simulations and stress tests. |
| Risk Modeling and Incentive Optimization | Weekly market updates for Ethereum USDC, Ethereum WETH, Polygon USDC, Arbitrum USDC. |
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 a new feature displaying interest rate curves on the recommendations page of the Gauntlet Compound dashboard, showing the expected impact of the recommendations. Note: these will only appear when a recommendation is live. Added filters to all charts on the Gauntlet Compound dashboard, enabling users to select one or multiple assets to be represented in a clean, focused view. |
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. |
Upcoming Selected Work
- Proceed with the V2 Deprecation Strategy following the execution of phase 1 of the V2 USDC deprecation
- On-chain proposal for rewards recommendations for the Arbitrum native USDC comet
- 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.