Gauntlet <> Compound Renewal 2023
01Summary
Renew Gauntlet's 12-month engagement for market risk management and capital efficiency optimization, with a fixed annual fee of $2,000,000 (46,970 COMP tokens). 30% paid to insolvency refund vault, 70% streamed linearly to Gauntlet over the year starting September 27, 2023.
- Type
- treasury allocation
- Funding
- $$2,000,000
Key changes
- Grant 46,970 COMP tokens to timelock for Gauntlet service payments(high)
- Transfer 14,091 COMP tokens (30% of fee) to insolvency refund vault (0x7667095Caa12b79fCa489ff6E2198Ca01fDAe057)(high)
- Create linear stream of 32,879 COMP tokens (70% of fee) to Gauntlet address over 12 months starting September 27, 2023(high)
- Expand risk management coverage to 15 comet deployments across Compound's multi-chain deployments(medium)
- Implement aligned refund mechanism where Gauntlet refunds portion of payment if risk parameter optimizations incur losses for protocol(medium)
Generated by Kvorum
02Description
Gauntlet <> Compound Renewal 2023
Background
Since 2021, Gauntlet has worked with Compound to maximize the protocol’s capital efficiency given an acceptable level of market risk.
Full details of the proposal can be found here.
Proposal
A proposal to renew Gauntlet’s 12-month engagement with Compound on continuous market risk management to maximize capital efficiency while minimizing the risk of insolvency and liquidations to create long-term sustainable growth. Gauntlet renewed its partnership with Compound last year in September, which runs through September 27, 2023.
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. Compared to Gauntlet’s 2022 engagement, the proposed 2023 renewal has broader coverage of 15 comet deployments and a simpler, more predictable fixed fee structure that is aligned with Compound’s multi-chain vision.
The service fee structure will be a fixed annual fee of $2,000,000, completely in COMP tokens. Using COMP token’s 30-day VWAP price as of EOD Sep 12, which is $42.58, the total COMP token amount for the fixed fee will be 46,970 COMP tokens. 30% (14,091 COMP tokens) will be sent as a lump sum to the insolvency refund vault (0x7667095Caa12b79fCa489ff6E2198Ca01fDAe057), and 70% (32,879 COMP tokens) will be streamed linearly over the course of the year, with the start date of Sep 27, to Gauntlet's address (0xD20c9667bf0047F313228F9fE11F8b9F8Dc29bBa).
In order to facilitate these payments, we transfer 46,970 COMP to the timelock using the _grantComp method on the Comptroller.
To increase its alignment with Compound, Gauntlet will refund a portion of the payment should Gauntlet's risk parameter optimizations incur losses for the protocol during the engagement. For more details, see the full proposal.
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
I compared each decoded action against the prose. Action 0 (_grantComp of 46,970 COMP to the timelock) matches the description's statement that COMP is granted to the timelock to facilitate payments. Action 1 transfers exactly 14,091 COMP to the exact insolvency refund vault address quoted in the description (0x7667...057), matching the claimed 30% lump sum. Action 2 approves the streaming contract for the remaining ~32,879 COMP, which is a standard mechanical step (approve before createStream) not explicitly mentioned but implied by 'streamed linearly' — this is routine and not a discrepancy. Action 3's createStream call sends the recipient address exactly matching Gauntlet's address as quoted in the description, with the amount matching 32,879 COMP, and start/end timestamps corresponding to Sep 27, 2023 through roughly Sep 26, 2024 — a one-year linear stream as described. All addresses, amounts, and timing align with the prose after accounting for minor rounding (32,879 vs exact 32,879.001...). No target, value, or omission discrepancies were found that a delegate should be warned about.'
Generated by Kvorum
04Actions
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _grantComp(address,uint256)
- Arguments
{ "0": "0x6d903f6003cca6255D85CcA4D3B5E5146dC33925", "1": "46970000000000000000000" }- Calldata
- Target
- 0xc00e…6888
- Value
- 0 wei
- Function
- transfer(address,uint256)
- Arguments
{ "0": "0x7667095Caa12b79fCa489ff6E2198Ca01fDAe057", "1": "14091000000000000000000" }- Calldata
- Target
- 0xc00e…6888
- Value
- 0 wei
- Function
- approve(address,uint256)
- Arguments
{ "0": "0xCD18eAa163733Da39c232722cBC4E8940b1D8888", "1": "32879001042586224154195" }- Calldata
- Target
- 0xcd18…8888
- Value
- 0 wei
- Function
- createStream(address,uint256,address,uint256,uint256)
- Arguments
{ "0": "0xD20c9667bf0047F313228F9fE11F8b9F8Dc29bBa", "1": "32879001042586224154195", "2": "0xc00e94Cb662C3520282E6f5717214004A7f26888", "3": "1695798000", "4": "1727334001" }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| EA0xea6c…3bf7 | For | 331K | 0.00% | — | 3y ago |
| 8D0x8d07…a265 | For | 70K | 0.00% | — | 3y ago |
| ED0xed11…bb04 | For | 50K | 0.00% | — | 3y ago |
| 070x0703…961b | For | 50K | 0.00% | — | 3y ago |
| 130x13bd…8548 | For | 50K | 0.00% | — | 3y ago |
| TEtennisbowling.eth0xc3aa…f546 | For | 47.5K | 0.00% | — | 3y ago |
| B90xb933…8dd1 | For | 27.5K | 0.00% | — | 3y ago |
| 3F0x3fb1…4c8a | For | 25.6K | 0.00% | — | 3y ago |
| DAdakeshi.eth0xe3c9…6b21 | For | 21.3K | 0.00% | — | 3y ago |
| 660x66cd…65f9 | For | 368.6 | 0.00% | — | 3y ago |
| 8B0x8bc8…7276 | For | 1.1 | 0.00% | — | 3y ago |
| 010x0151…c3b9 | For | 1.1 | 0.00% | — | 3y ago |
| 0C0x0c9f…408b | For | 1 | 0.00% | — | 3y ago |
| 950x952c…bc95 | For | 1 | 0.00% | — | 3y ago |
| E40xe459…e666 | For | 0.7 | 0.00% | — | 3y ago |
| C30xc34a…68c2 | For | 0.7 | 0.00% | — | 3y ago |
| 920x9219…38e1 | For | 0.6 | 0.00% | — | 3y ago |
| 040x047a…9eb9 | For | 0.6 | 0.00% | — | 3y ago |
| 980x9828…6779 | For | 0.6 | 0.00% | — | 3y ago |
| 2F0x2f2f…f78a | For | 0.5 | 0.00% | — | 3y ago |
| 2B0x2b12…31f0 | For | 0.3 | 0.00% | — | 3y ago |
| 500x50d2…5318 | For | 0.3 | 0.00% | — | 3y ago |
| C70xc769…b3e7 | For | 0.2 | 0.00% | — | 3y ago |
| 2D0x2d76…4fc6 | For | 0.2 | 0.00% | — | 3y ago |
| 340x3496…126b | For | 0.2 | 0.00% | — | 3y ago |
| 2B0x2bb1…f93f | For | 0.1 | 0.00% | — | 3y ago |
| 040x0401…5216 | For | 0.1 | 0.00% | — | 3y ago |
| 8A0x8ae4…d10a | For | 0.1 | 0.00% | — | 3y ago |
| D80xd828…d0b1 | For | 0.1 | 0.00% | — | 3y ago |
| 240x2474…acf8 | For | 0.1 | 0.00% | — | 3y ago |
| EC0xec87…a9a9 | For | 0 | 0.00% | — | 3y ago |
| 620x62b2…4960 | For | 0 | 0.00% | — | 3y ago |
| CA0xca5b…3abf | For | 0 | 0.00% | — | 3y ago |
| 930x938a…9290 | For | 0 | 0.00% | — | 3y ago |
| 280x283c…d33d | For | 0 | 0.00% | — | 3y ago |
| 220x22de…85a0 | For | 0 | 0.00% | — | 3y ago |
| 0F0x0ff1…fa19 | For | 0 | 0.00% | — | 3y ago |
| A10xa136…1f9b | For | 0 | 0.00% | — | 3y ago |
| C60xc694…a80b | For | 0 | 0.00% | — | 3y ago |
| 610x618b…de99 | For | 0 | 0.00% | — | 3y ago |
| 8E0x8e2c…d1d1 | Against | 0 | 0.00% | — | 3y ago |
| 1C0x1c85…64ad | For | 0 | 0.00% | — | 3y ago |
| 350x3538…4ec6 | For | 0 | 0.00% | — | 3y ago |
| F70xf7e5…23e5 | Abstain | 0 | 0.00% | — | 3y ago |
| 580x5884…2db4 | For | 0 | 0.00% | — | 3y ago |
| 850x852a…3910 | For | 0 | 0.00% | — | 3y ago |
| 8A0x8a24…ccae | For | 0 | 0.00% | — | 3y ago |
07Forum
- Gauntlet <> Compound Renewal 2023 ↗discourse · high confidence
- Gauntlet <> Compound Renewal ↗discourse · high confidence
Arguments for
- Gauntlet has successfully prevented major insolvencies over four years through proactive risk management across multiple stress events including USDC depeg and FTX volatility.— Gauntlet, pennblockchain, Michigan_Blockchain, RogerS
- The fixed fee structure of $2M is predictable and aligned with Compound's multi-chain expansion, scaling flexibly to 15 Comet deployments with no marginal cost.— Gauntlet, Michigan_Blockchain
- The insolvency refund mechanism with up to 30% of fees at risk demonstrates strong alignment and puts Gauntlet's skin in the game to protect the protocol.— Gauntlet, pennblockchain
- Gauntlet has maintained technical governance continuity and organizational memory critical to the DAO's long-term viability.— RogerS, pennblockchain
- The fee increase from $1.45M to $2M reflects expanded scope including team growth by 3 people, redundancy systems, and coverage of 6 live Comets with capacity for 9 additional deployments.— Gauntlet, Michigan_Blockchain
- Gauntlet has delivered substantial value including 29 parameter recommendation sets, quantitative research across multiple chains, and rapid firefighting during market volatility.— Gauntlet
- Moving to a fixed fee provides stability compared to variable fees that fluctuate with total borrow volume, which declined sharply from $6B to $1B during bear market conditions.— Michigan_Blockchain
Arguments against
None surfaced.
Notable participants
- GauntletProposal author presenting the renewal terms, fee structure, and service scope.
- pennblockchainDelegate expressing support for the renewal and endorsing the insolvency refund alignment mechanism.
- Michigan_BlockchainDelegate supporting renewal while contextualizing fee structure changes in relation to market volatility and performance-based prior costs.
- RogerSDelegate affirming renewal value based on Gauntlet's visible forum activity and importance of risk management continuity.
Generated by Kvorum
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