Gauntlet <> Aave Renewal

Summary

A proposal to renew Gauntlet’s 12-month engagement with Aave on continuous market risk management to maximize capital efficiency while minimizing the risk of insolvency and liquidations to create long-term sustainable growth. Full details of the proposal can be found in our forum post. The engagement was pre-approved by the Aave community via Snapshot.

Proposal

Gauntlet’s Risk Management platform quantifies risk, optimizes risk parameters, runs economic stress tests, and calibrates parameters dynamically. Gauntlet uses agent-based simulation models tuned to actual market data to model tail market events and interactions between different users within DeFi protocols.

The engagement runs from Dec 28, 2022 to Dec 28, 2023 and includes risk management coverage of all Aave v2 and v3 markets. The total annual fee is $2,000,000 - 70% is paid in aUSDC (1,400,000) and 30% in AAVE (9,919 AAVE tokens).

Full details of the engagement scope, integration timeline, and KPIs are covered in our forum post.

Specification

A full specification of the payload contract and tests enabling this proposal can be found on Gauntlet's Github here.

The Proposal Payload does the following:

• 30% of the total annual fee (600,000 in USDC) will be deposited in a vault for the insolvency refund.
• The remaining 800,000 in aUSDC and 9,919 AAVE tokens will be streamed linearly over 1 year.

Implementation

The Proposal Payload has been tested and peer-reviewed by Bored Ghost Developing, including simulations on mainnet of the whole proposal lifecycle.

Link to Test Cases: ProposalPayloadE2E.t.sol

Link to Payload implementation: ProposalPayload.sol

Deployed Contracts: ProposalPayload = 0x03232b5ee80369a88620615f8328beec1884b731

Thank you to the Llama team for providing open source governance tooling that we used to prepare this proposal.

Copyright

Copyright and related rights waived via CC0.

By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos.