Risk Parameter Updates 2022-03-29

@ClairvoyantLabs - we hear your thoughts around these specific assets. Gauntlet’s platform treats all assets without bias when considering changes to the parameters and our simulations show an opportunity to increase capital efficiency for these assets without adding risk. It is up to the community to decide whether these assets belong in Compound or not. We agree that the governance process is heavy handed and it would be better to have some mechanism to fast track these kinds of parameter changes to production rather than going through the entire governance process for every risk parameter update.

With regards to Balancer - Gauntlet decided to sunset its Fee Optimization Product, which we were delivering to Balancer. This was a decision we don’t take lightly, especially because we’re big supporters of the Balancer protocol, and have really enjoyed working together over the past year. However, we believe that managing incentives is much more impactful than setting fees given that incentives make up a larger percentage of LP earnings. So, we are focusing our product around Incentive Optimization for our AMM clients instead of setting fees as a standalone product.

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