Gauntlet + Vesper for On-Chain Risk Management

DeFi modeling platform Gauntlet will work with Vesper to build out an on-chain risk management system for more secure strategies, higher yield, and a superior UI.

Per the passing governance vote, vVSP holders have greenlit a collaboration between Gauntlet and Vesper based on the specifications of Gauntlet’s proposal.

Gauntlet has experience as an active contributor on other top DeFi protocols like Aave, Compound, and MakerDAO. This experience will contribute directly to their intention of building out risk management modules for individual Vesper Grow Pools.

Gauntlet’s Risk Management Proposition

Gauntlet’s proposal consists of two components, a monitoring dashboard for strategies and a “lending risk model” for dynamic collateral allocation.

The dashboard enables users to see health metrics and risk scores on all Vesper pools, and more acutely manage their positions to reflect their personal risk tolerance.

The lending risk model analyzes several on-chain metrics, like network bloat/transaction fees, price trends, borrower/lender behavior, and more to determine appropriate collateral benchmarks for pool strategies taking out loans from Maker or otherwise.

This enables strategies to be more aggressive under “normal” circumstances and more conservative when markets get shaky. As a result, users can appreciate a strategy upgrade that is simultaneously more secure and better performing.

In return, Gauntlet will take a 1.5% split from revenue on pools that integrate their technology. This reflects a modification to the payment splitter contract, from a 95/5% split to 93.5/1.5/5%.

More broadly, this collaboration reflects another initiative in building out Vesper to be the premier set-and-forget, secure yield aggregator experience.

More over at Gauntlet’s blog.