# Q2 Dynamic Risk Parameters
AI summary
This proposal seeks to renew Aave's engagement with Gauntlet for their "Dynamic Risk Parameters" service. Gauntlet provides continuous market risk management to optimize returns for users, improve how efficiently capital is used, and reduce potential losses for depositors. They have been providing this service since mid-August, making numerous parameter updates and publishing risk analyses.
If passed, Gauntlet will continue to provide its risk management services, which they claim have saved Aave users $1.4 million annually by reducing liquidation bonuses and have increased capital efficiency by $16.4 million annually. The proposal does not specify the cost of this renewal, so the financial impact on the Aave treasury cannot be determined.
Voting results
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Q2 Dynamic Risk Parameters
AIP-46
Author(s): Tarun Chitra, Watson Fu, Jonathan Reem, Nick Cannon, Paul Lei
Simple Summary
A proposal to renew Gauntlet's Dynamic Risk Parameters engagement for continuous market risk management to optimize yield, capital efficiency, and mitigate depositor losses.
Background
Since mid-August, Gauntlet has provided Dynamic Risk Parameters and delivered on all areas outlined in the original proposal. Gauntle…