Background

For almost two years now Gauntlet has formally and informally worked for Compound to perform market risk assessments, contribute to treasury management, optimize incentives, calibrate risk parameters, and upgrade the protocol. During that time Gauntlet has been able to refine our core models and agents specifically for autonomous interest rate protocol's like Compound.

As the protocol continues to decentralize to the community our position is that dynamic risk parameters are a vital component to growth.

Full proposal and forum discussion

Contributor Grant

Gauntlet is requesting a streaming grant for continuous market risk management to optimize yield, capital efficiency, and mitigate depositor losses.

Supported Risk Parameters include Collateral Factor, Close Factor, Borrow Cap, Reserve Factor, and Liquidation Incentive. Gauntlet will also develop a Risk Dashboard for the community.

At the start of every quarter for one year Gauntlet will create a proposal to update the service fee payment (higher or lower) in accordance with the formula outlined in the full proposal.