I love the work that Gauntlet is doing and acknowledge they are highly skilled. Their simulations are certainly helpful for monitoring the risks the protocol has. That being said, I have read their risk reports, medium articles and discussed with them their methodology. In my opinion, as a long-time participant in Compound and generally DeFi, their methodology could better account for the liquidity available onchain. Currently, they focus on traded volume as the best indication for liquidity. Before Uniswap/Sushiswap and other AMMs had significant liquidity, I would have used the same trading volume stat they are using to measure liquidity; however, a significant amount of onchain liquidity has built up in recent months, and purely measuring trading volume is no longer sufficient.
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