Gauntlet to Provide Dynamic Risk Management for BENQI

Gauntlet will help BENQI mitigate market risks on Avalanche, optimizing solvency and improving capital efficiency for the protocol.

As the Decentralized Finance (DeFi) space on Avalanche continues to accelerate at a rapid pace, it is imperative that key metrics relating to risk management are studied and managed accordingly. The BENQI team is thrilled to announce the engagement with Gauntlet to leverage their platform in this key area. Gauntlet will be conducting dynamic risk management for BENQI to mitigate insolvency risk, automate risk parameters, calibrate incentives, and improve capital efficiency.

Trusted by top DeFi projects such as Compound, Acala, Balancer, MakerDAO, Aave, and Sushiswap, Gauntlet is a financial modelling platform that uses battle-tested techniques from the algorithmic trading industry to inform on-chain protocol management. The platform leverages agent-based simulation to tune key protocol parameters for managing risk and maximizing growth.

“DeFi is jumping chains to Avalanche and we’re looking forward to deploying our platform with a great project in BENQI. Our models are well trained to help mitigate early market risks and facilitate growth for BENQI and the growing Avalanche ecosystem. “— Nick Cannon, Head of Growth at Gauntlet

What’s next?

Gauntlet has begun integrating BENQI’s contracts into their simulation platform, and customizing their Lending Risk Model and Parameter Optimization Model for Avalanche. These model parameters will be continuously calibrated and refitted, with the outputs used to fine-tune BENQI.

A Risk Dashboard will also be built by Gauntlet to provide key insights into risk and capital efficiencies of the protocol. The dashboard will focus on both the system-level risk in BENQI and the market risk on an individual collateral level.

“The economic security of a money market needs to be constantly monitored and tuned to ensure that it can scale to underwrite billions of dollars in borrowed assets across various volatility scenarios. We are thrilled to be collaborating with Gauntlet’s industry leading team to optimize BENQI’s key parameters and mitigate the market risk for its users.” — JD Gagnon, Co-Founder BENQI

This collaboration with Gauntlet signifies BENQI’s ongoing focus on ensuring the security and efficiency of the protocol. The team are happy to be sharing this journey with Gauntlet to grow DeFi on Avalanche, and are looking forward to sharing relevant data analysis with the community in the coming months.

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 rewards. Our risk scoring and agent-based simulation models optimize parameter decisions for tens of billions of dollars in DeFi TVL.

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About BENQI

Built on Avalanche’s highly scalable network, BENQI’s vision of bridging decentralized finance (DeFi) and institutional networks starts by launching BENQI on the Avalanche C-Chain. Through BENQI, Avalanche users will be able to earn interest on their assets, obtain credit through over-collateralized loans and earn QI governance tokens as rewards for providing liquidity on the protocol and Pangolin. For more information about BENQI, please visit: benqi.fi

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BENQI is a decentralized non-custodial liquidity market protocol on Avalanche, enabling users to effortlessly lend, borrow, and earn interest with their assets.