[ARFC] Gauntlet <> Aave Renewal 2023

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Gauntlet has proposed to extend their risk management partnership with Aave, offering continuous support and new features like GHO stablecoin support, despite mixed community reactions regarding communication and pricing. The community has passed a Snapshot vote in favor, and an Aave Improvement Proposal (AIP) is up for voting to finalize the partnership renewal.

What is this about?

Gauntlet, a risk management platform, has proposed to renew their partnership with Aave for another year. The proposal includes continuous risk management for Aave V2 and V3, support for the GHO stablecoin, and an insolvency refund mechanism. Gauntlet has been instrumental in Aave's risk management for three years, contributing to upgrades, risk alerts, and recommendations. The renewal aims to maintain this relationship, focusing on maximizing capital efficiency and minimizing risks for Aave.

How is the community reacting?

The community's reaction remains mixed. Supporters like Zeebradoom, EzR3aL, 0xkeyrock.eth, Wolfja-BlockchainCU, Funkmasterflex, Kene_StableLab, and PennBlockchain appreciate Gauntlet's proactive risk management and data-driven approach. They believe Gauntlet's work aligns with Aave's goals and has been beneficial. On the other hand, TokenLogic and MarcZeller have voiced concerns about Gauntlet's communication, response times, collaboration with other service providers, and pricing. Despite these concerns, Gauntlet has shown a willingness to adjust their proposal, including the payment structure and service fee, to address community feedback. Lbsblockchain endorses the renewal of Gauntlet's contract for $1.6M, highlighting their positive track record and responsiveness in critical situations18. Gauntlet thanked the community for their feedback and participation in a vote, mentioning that the Snapshot has been posted19. ApuMallku suggests that Gauntlet should be more proactive with the 24/7 nature of decentralized finance (defi) [ApuMallku - 21].

Why this is positive?

  • Gauntlet has helped prevent major insolvencies for Aave and supported its growth across various chains.
  • The proposal offers a larger coverage with the same fixed fee structure, aligning with Aave's strategic initiatives.
  • Gauntlet's insolvency refund policy shows their confidence in their work and alignment with Aave's interests.
  • Commitment to improve Value at Risk (VaR), Liquidations at Risk (LaR), and Borrowing Power without increasing the protocol’s net insolvent value percentage.
  • Flexibility demonstrated by Gauntlet in adjusting their service fee and payment structure in response to community feedback.

Why this is negative?

  • Concerns about Gauntlet's communication and response times, which are crucial in the DeFi space.
  • Criticisms of Gauntlet's collaboration with other service providers and their handling of a responsible disclosure event.
  • Some community members view Gauntlet's pricing as too high for the value and engagement provided.
  • Frustration caused by the Supply Cap issue on Polygon, which may have impacted Aave's growth.

Next actions

  • The Snapshot vote has passed, and the Aave community has shown support for the initiative [Gauntlet - 20].
  • The AIP (Aave Improvement Proposal) has been published, and voting is set to begin in one day [Gauntlet - 20].

Posted a month ago

Last reply 3 days ago

Summary updated 3 days ago

Last updated 08/12 04:39