Market Risk Monthly (February 2022): Updates and Review

Reading time saved: 1 minutes

2 replies, 1927 views, 4 likes


Gauntlet has been actively managing market risks for Aave, implementing 15 parameter changes across seven assets, including modifications to Loan To Value and Liquidation Threshold of certain assets, and the Liquidation Bonus of others. They've also created educational resources and a risk dashboard for the Aave community, and are currently analyzing the risk parameters of CVX, a new proposal on the forum.

The discussion primarily revolved around the market risks associated with Aave, as reported by Pauljlei. The report was an extension of Gauntlet’s Market Downturn Risk Review, which aimed to keep the community updated on potential market risks. Gauntlet has been actively involved in executing parameter recommendations as part of their Dynamic Risk Parameters engagement. Over the past two months, they have implemented two sets of recommendations, totaling fifteen parameter changes across seven assets. These changes included modifications to the Loan To Value and Liquidation Threshold of CRV, FEI, SNX, and xSUSHI, and the Liquidation Bonus of FEI, LINK, MKR, and UNI. These updates were in line with the Moderate risk level, which was the community's preferred choice1.

In addition to risk management, Gauntlet has also been proactive in creating educational resources for the Aave community and the broader DeFi community. They have published several educational documents and launched the Aave Risk Dashboard, which provides daily updates1.

The discussion also included a query from Fig to Pauljlei about the risk associated with CVX, which is currently under proposal on the forum. Pauljlei confirmed that Gauntlet is in the process of analyzing the initial CVX risk parameters and will share the results in approximately three weeks 2,3. This indicates that the community is actively engaged in risk management and is taking steps to ensure the safety of its members' investments.

Posted 2 years ago

Last reply 2 years ago

Summary updated 2 months ago

Last updated 08/12 04:39