Gauntlet Acala Dashboard Launch

Over the past year, Gauntlet has been managing market risk for Karura. As part of our partnership, Gauntlet has been dynamically adjusting risk parameters like minimum collateralization and liquidation ratios to balance risk and capital efficiency for the protocol.

We are excited to announce that Gauntlet has extended coverage to Acala. Over the last couple of months, the Gauntlet team has built the infrastructure to ingest market data and run simulations and economic stress tests on the Acala ecosystem. The Acala Risk Dashboard is now live, and all of Gauntlet’s recommendations will be reflected on our dashboard when they are presented to the community. Our latest recommendations can be found here.

There are two immediate goals for the dashboard. First, the dashboard will help the community understand Gauntlet’s methodology and recommendations. Second, the dashboard will provide insight into risk mitigation and capital efficiency improvements for the protocol.

Value at Risk (VaR) and Borrow Usage (BU) are topline Risk and Capital Efficiency measures, respectively. VaR conveys capital at risk due to insolvencies and liquidations when markets are under duress (i.e., Black Thursday). We currently compute VaR (based on a measure of protocol insolvency) at the 95th percentile of our simulation runs, assuming higher than normal volatility. Borrow Usage measures how efficiently users are minting aUSD against their collateral.

To get an even more in-depth understanding of our methodology for running simulations, please see Gauntlet’s Parameter Recommendation Methodology and Gauntlet’s Model Methodology.

Feel free to provide feedback directly to us using the Send Feedback button on the dashboard!

Quick Links:
Dashboard: Gauntlet Autogov