Gauntlet <> Compound Renewal 2024
01Summary
Compound is renewing Gauntlet's 12-month Risk Management, Yield Optimization, and Incentive Optimization engagement for $2.3M total compensation (30% in COMP, 70% in USDC streamed over one year). Gauntlet will manage market risk and capital efficiency while optimizing incentives for protocol growth.
- Type
- treasury allocation
- Funding
- $2,300,000
Key changes
- Transfer 17,012 COMP to Gauntlet (30% of annual fee in lump sum)(high)
- Deposit 54,241 COMP into Aera Vault for conversion to USDC streaming payment of $1.61M over one year at 0.051 USDC per second(high)
- Gauntlet commits to refund DAO up to 30% of fee ($690K) contingent on performance terms defined in forum post(medium)
- Risk management services to maximize capital efficiency while minimizing insolvency and liquidation risk(high)
- Incentive optimization to bootstrap liquidity, promote growth, and facilitate decentralized governance(medium)
Notable concerns
- 30% of fee ($690K) refund is conditional on terms defined in external forum post, not fully detailed in proposal
- Service agreement terms are governed by external Gauntlet terms of service at gauntlet.network/tos
Generated by Kvorum
02Description
Gauntlet <> Compound Renewal 2024
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 Risk Management, Yield Optimization, and Incentive Optimization. The scope of work includes continuous market risk management to maximize capital efficiency while minimizing the risk of insolvency and liquidations, aiming to create long-term sustainable growth. Incentive optimization aims to bootstrap liquidity, promote growth, and facilitate decentralized governance. Gauntlet renewed its partnership with Compound last year in September, which runs through September 27, 2024.
Compensation Structure
The service fee structure will be a fixed annual fee of $2,300,000 using the COMP spot price.
A portion of our payment (30% of the $2.3M fee) will be transferred from Compound in a lump sum COMP transfer directly to Gauntlet. Gauntlet will refund the DAO up to 30% of our fee ($690K) in any event, as defined in the forum post.
The remaining 70% of the fee will be paid in USDC via the Vendor Payments Aera Vault, following the same process that the community has approved for Open Zeppelin. This proposal deposits $2.2M of COMP into Aera and calls createStream on a Llama Pay Router, via the Compound Aera vault’s execute function. The stream will pay out on a per-second basis over a year. $1.61M USDC over 31536000 seconds gives a rate of 0.05105276509 USDC/sec. The additional buffer can be reclaimed by Compound governance at any time.
Gauntlet will be able to withdraw the vested funds at any time.
More details can be found in the forum post.
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
A calldata-vs-description analysis is not generated yet. Review the decoded actions →
04Actions
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _grantComp(address,uint256)
- Arguments
{ "0": "0x6d903f6003cca6255D85CcA4D3B5E5146dC33925", "1": "17012000000000000000000" }- Calldata
- Target
- 0xc00e…6888
- Value
- 0 wei
- Function
- transfer(address,uint256)
- Arguments
{ "0": "0x7667095Caa12b79fCa489ff6E2198Ca01fDAe057", "1": "17012000000000000000000" }- Calldata
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _grantComp(address,uint256)
- Arguments
{ "0": "0x6d903f6003cca6255D85CcA4D3B5E5146dC33925", "1": "54241000000000000000000" }- Calldata
- Target
- 0xc00e…6888
- Value
- 0 wei
- Function
- approve(address,uint256)
- Arguments
{ "0": "0x8624f61Cc6e5A86790e173712AfDd480fa8b73Ba", "1": "54241000000000000000000" }- Calldata
- Target
- 0x8624…73ba
- Value
- 0 wei
- Function
- deposit((address,uint256)[])
- Arguments
{ "0": [ [ "0xc00e94Cb662C3520282E6f5717214004A7f26888", "54241000000000000000000" ] ] }- Calldata
- Target
- 0x8624…73ba
- Value
- 0 wei
- Function
- execute((address,uint256,bytes))
- Arguments
{ "0": [ "0x3b109aa111BdF11B30350CdfAd7e9Cf091421Aa4", "0", "0x122f79c0000000000000000000000000a0b86991c6218b36c1d19d4a2e9eb0ce3606eb48000000000000000000000000d20c9667bf0047f313228f9fe11f8b9f8dc29bba00000000000000000000000000000000000000000000000046d995efb61ac6fb0000000000000000000000000000000000000000000000000000000001e13380" ] }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 220x2210…d02e | For | 85.6K | 9.45% | — | 2y ago |
| B90xb933…8dd1 | For | 80K | 8.83% | — | 2y ago |
| 130x13bd…8548 | For | 80K | 8.82% | — | 2y ago |
| 070x0703…961b | For | 80K | 8.82% | — | 2y ago |
| 660x66cd…65f9 | For | 80K | 8.82% | — | 2y ago |
| 3F0x3fb1…4c8a | For | 80K | 8.82% | — | 2y ago |
| B40xb49f…7948 | For | 80K | 8.82% | — | 2y ago |
| B30xb356…c826 | For | 54.6K | 6.02% | — | 2y ago |
| 7A0x7ae1…e585 | For | 50K | 5.52% | — | 2y ago |
| ED0xed11…bb04 | For | 50K | 5.52% | — | 2y ago |
| 050x0579…ca09 | For | 50K | 5.52% | — | 2y ago |
| 4F0x4f89…fd3c | For | 50K | 5.52% | — | 2y ago |
| DC0xdc1f…e432 | For | 50K | 5.52% | — | 2y ago |
| TEtennisbowling.eth0xc3aa…f546 | For | 35K | 3.86% | — | 2y ago |
| 720x72c5…7708 | For | 1.2K | 0.13% | — | 2y ago |
| E20xe2a6…325d | For | 100 | 0.01% | — | 2y ago |
| 210x21b3…fa75 | For | 2 | 0.00% | — | 2y ago |
| 170x1729…b879 | For | 1 | 0.00% | — | 2y ago |
| D20xd2a7…5a0c | For | 1 | 0.00% | — | 2y ago |
| 280x2817…24f1 | For | 0.1 | 0.00% | — | 2y ago |
| A50xa55e…40e1 | For | 0.1 | 0.00% | — | 2y ago |
| D80xd8de…ae41 | For | 0.1 | 0.00% | — | 2y ago |
07Forum
- Gauntlet <> Compound Renewal 2024 ↗discourse · high confidence
Arguments for
- Gauntlet has a five-year track record of preventing major insolvencies through proactive risk management, even during severe market stress events.— Gauntlet, cylon
- The renewal maintains the same fixed fee as last year while expanding scope, including broader Comet coverage and new staking product economic analysis, providing predictable costs for the DAO.— Gauntlet
- The proposal includes a 30% insolvency refund mechanism giving Gauntlet 'skin in the game' and aligning their incentives with the protocol's safety.— Gauntlet
- AlphaGrowth strongly supports renewal, valuing Gauntlet's collaboration and expertise, and encourages the community to back the initiative.— bryancolligan
- DoDAO has been impressed with Gauntlet's work over multiple years and sees their role as increasingly critical as Compound expands to more chains and markets.— DoDAO
- OpenZeppelin notes Gauntlet is a critical, highly active service provider (frequent proposal submitter, Pause Guardian multisig member) essential to Compound's risk operations.— cylon
- Other community members and integrators express satisfaction with Gauntlet's proactive management across many markets and support continuing the partnership.— dmitriywoofsoftware
Arguments against
None surfaced.
Unresolved concerns
- AlphaGrowth requested faster governance turnaround for parameter changes (24-72 hours vs 8 days), which Gauntlet agreed to work on but no concrete mechanism was finalized in the thread.— bryancolligan, Gauntlet
- Requests for a clearer path to profitability across all markets (fees greater than incentive spend) were acknowledged by Gauntlet as a future priority but not detailed with specific targets or timelines.— bryancolligan, Gauntlet
- Multiple integrators requested higher borrow collateral factors/leverage, and Gauntlet only committed to providing conservative vs. aggressive recommendation options rather than firm changes.— bryancolligan
- DoDAO's suggestions for regular published reports on fee efficiency, cross-protocol rate comparisons, and a formal asset delisting 'performance factor' were acknowledged as feasible but no publishing cadence or process was committed to.— DoDAO
- Gauntlet disclosed a potential conflict of interest, noting it may vote on its own proposal due to governance changes, but this was not further discussed or resolved by the community.— Gauntlet
Notable participants
- GauntletProposer who detailed the renewal terms, responded to all community feedback, and announced the proposal's passage.
- bryancolliganAlphaGrowth representative who voiced strong support while raising specific operational requests (profitability, governance speed, leverage, listing data).
- DoDAOLong-time ecosystem participant who praised Gauntlet's work and proposed additional reporting and delisting process ideas.
- cylonOpenZeppelin representative who, while stating neutrality on vendor selection, affirmed Gauntlet's critical and active role in Compound's risk operations.
- dmitriywoofsoftwareCommunity/integration voice expressing satisfaction with Gauntlet's proactive support and endorsing renewal.
Generated by Kvorum
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