Gauntlet <> Aave Renewal 2023
01Summary
Aave renews its 12-month engagement with Gauntlet for continuous market risk management services covering Aave V2, Aave V3, GHO, and Insolvency Refund. Total annual fee is $1,600,000 (50% GHO, 50% aUSDT), with 30% of aUSDT portion deposited in an insolvency refund vault and remainder streamed linearly over one year.
- Type
- treasury allocation
- Funding
- $1600000
Key changes
- Establishment of 12-month engagement with Gauntlet for market risk management and parameter optimization from December 28, 2023 to December 28, 2024(high)
- Annual payment of $1,600,000 ($800,000 GHO and $800,000 aUSDT equivalent) with 30% of aUSDT component ($480,000) allocated to insolvency refund vault(high)
- Linear streaming of remaining compensation ($320,000 aUSDT and $800,000 GHO) over 12-month period(medium)
Generated by Kvorum
02Description
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. For more details, see the full forum post here. The engagement was pre-approved by the Aave community via Snapshot.
Proposal
Since 2021, Gauntlet has been serving the DAO formally. Gauntlet’s Risk Management platform quantifies risk, optimizes risk parameters, runs economic stress tests, and calibrates parameters dynamically. We use agent-based simulation models tuned to actual market data to model tail market events and interactions between different users within DeFi protocols. Our simulations are constructed analogously to how transaction-level backtesting is done in high-frequency and algorithmic trading. Our platform provides similar statistical power in these actuarial analyses by modifying these techniques to handle the idiosyncrasies of cryptocurrencies.
Gauntlet’s features will cover Aave V2, Aave V3, GHO (new), and Insolvency Refund.
The engagement runs from Dec 28, 2023 to Dec 28, 2024. The annual fee will be a fixed fee of $1,600,000. This will be 50% in GHO and 50% in aUSDT.
Full details of the engagement scope, roadmap, expectations, and KPIs are covered in our forum post.
Specification
The Proposal Payload does the following:
- 30% of the total annual fee (480,000 in aUSDT) will be deposited in a vault for the insolvency refund.
- The remaining 320,000 in aUSDT and 800,000 GHO will be streamed linearly over 1 year.
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum
- Snapshot
- Discussion
Disclaimer
Gauntlet has not received any compensation from any third-party in exchange for recommending any of the actions contained in 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.
03Mismatch analysis
The proposal follows Aave's standard governance v3 pattern: the mainnet-level proposal only contains a single 'forwardPayloadForExecution' call that hands off execution to a payload controller contract (0xdAbad81aF85554E9ae636395611C58F7eC1aAEc5), which is referenced in the proposal's linked implementation contract (AaveV3Ethereum_GauntletAaveRenewal2023). This is the normal mechanism for Aave DAO proposals and is not itself a discrepancy - it is boilerplate execution plumbing consistent with how Aave payloads are deployed and forwarded for on-chain execution. However, the decoded calldata provided here does not expose the underlying payload's actual instructions (e.g., the vault deposit of 480,000 aUSDT, the linear streams of 320,000 aUSDT and 800,000 GHO, or the fee split percentages described in the proposal). Because only the forwarding call is visible and not the destination payload's internal logic, I cannot verify or refute the specific dollar amounts, token splits, or streaming mechanics claimed in the description against on-chain state. Nothing in the visible calldata contradicts the description, and the action taken (forwarding to the linked payload contract) is consistent with what a standard Aave funding/renewal proposal looks like. Given the inability to fully verify the specific financial parameters from the calldata alone, confidence is low, but there is no evidence of any mismatch, so the overall assessment is consistent based on available information.
Generated by Kvorum
04Actions
- Target
- 0x9aee…2bc7
- Value
- 0 wei
- Function
- forwardPayloadForExecution((uint256,uint8,address,uint40))
- Arguments
{ "0": [ "1", "1", "0xdAbad81aF85554E9ae636395611C58F7eC1aAEc5", "29" ] }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
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