Agoric Signs on Gauntlet for Inter Protocol Stablecoin Risk Optimization on Cosmos
Gauntlet is partnering with our first Cosmos platform, Agoric. Agoric is a Proof of Stake chain running smart contracts built on Javascript. The Gauntlet platform is built to mitigate risk, improve capital efficiency, and withstand the volatile crypto markets, especially amidst the market conditions of recent weeks. As Agoric carves out its space in the Cosmos ecosystem and beyond, its team recognizes how crucial it is to focus on risk management, which is why they’ve decided to partner with us.
“Gauntlet’s recommendations will influence the critical system parameters and ensure the protocol controls and incentives respond to evolving market conditions,” said Dean Tribble, CEO and Co-Founder of Agoric. “We look forward to a long partnership.”
In preparation for the launch of Agoric’s stablecoin, IST (Inter Protocol, formerly known as RUN), we will deploy our risk management platform to support the open, JavaScript-based, object-capability programming layer. This deployment will expedite application building with secure smart contracts.
Stablecoin mechanics have risen to the forefront of crypto, and their circulation has grown significantly. Stable assets of exchange are a necessary backbone to any thriving economy, making them a critical component in new ecosystems. It is no coincidence that Gauntlet is celebrating the opportunity to support Agoric, who is highly focused and invested in building a secure architecture and community around IST.
A foundational parallel that can be drawn between Gauntlet and Agoric is the notion of incorporating lessons learned from TradFi into DeFi. While Gauntlet has consistently delivered value within the realm of financial modeling and risk management, Agoric and the Inter Protocol are hoping to do the same regarding stable assets and efficient on-chain deployments. By joining forces, we provide the data insights for our trailblazing partners to encourage safe and sustainable financial frameworks.
In addition, Agoric is taking advantage of their team’s development and economic expertise while utilizing Javascript as a foundation for their L1 protocol. Doing so expedites the output that developers are capable of when building on their chain. A Javascript chain also paves the way for a larger market of developers to now take the step into DeFi and create value for this exciting community.
As the Agoric chain continues to open the doors of its chain, L2 and L3 teams should rejoice to find a larger pool of potential hires (Javascript developers), a reusable component library, and a concise architecture focused on safety.
On top of protocol mechanics, we’re excited about the new Agoric governance framework with their Economic Committee’s implementation. Effective on-chain governance has been a fascinating subject, as Gauntlet gets a unique perspective given our broader DAO participation and delegation activity. By introducing a group of community approved and established experts to the equation, on-chain improvements will see benefits to this innovative model.
After introducing the Inter Protocol and our partnership at the Cosmos Gateway Conference in Prague earlier this month, our team and the Agoric team are looking forward to the mainnet launch shortly. To provide dynamic risk parameter recommendations for Agoric, we will modify our existing simulation models to integrate and fit into the Inter Protocol. The Gauntlet platform will battle test and fine-tune critical components, including providing collateral, borrowing and repaying, and liquidations.
“The Inter Protocol is an over-collateralized stable token with upgradable contract modules and fine-grained governance controls,” said Tribble. “It is built to be interchain-native and to hold collateral and liquidate debt on external chains. Agoric is proud to be working with Gauntlet to drive informed recommendations to the Inter Protocol governance team as they navigate these novel challenges.”
Agoric and their Inter Protocol seek to establish themselves as a powerful Proof of Stake chain with an effective stable asset. At Gauntlet, we’re excited that our risk management platform will be supporting their journey every step of the way.
About Gauntlet
Gauntlet is a simulation platform for on-chain risk management. Gauntlet uses battle-tested techniques from the algorithmic trading industry to help protocols manage risk, fees, capital efficiency, and incentives. Our agent-based simulation models optimize parameter decisions for tens of billions of dollars in DeFi TVL.
About Agoric
A layer 1 Proof-of-Stake (PoS) public blockchain and smart contract platform, Agoric is designed to enable developers to rapidly build safe smart contracts in the most popular programming language on the planet, JavaScript. Agoric can quickly bring millions of developers to the DeFi frontier. With Hardened JavaScript, Agoric is providing the safe, stable environment that developers need to build, deploy, and operate sophisticated Dapps, NFTs, and DeFi markets. The design of the Agoric public blockchain benefits from over 30 years (Miller & Drexler, 1988) of deep expertise and experience in building distributed electronic markets, financial services, and providing smart contract risk management to deliver a wide-ranging foundation for financial applications.
