Gauntlet's advanced risk management techniques optimize yields for over $1.5 billion in onchain vaults, benefiting thousands of users.
Gauntlet stands out as a leader in quantitative risk management within the cryptocurrency space. It specializes in developing optimization strategies and platforms tailored for various protocols, applications, and blockchain environments. Leveraging cutting-edge economic risk models, Gauntlet safeguards billions within the decentralized finance (DeFi) ecosystem. Now, this same expertise powers their onchain vaults, facilitating curated vaults on platforms like Morpho and first-party vault infrastructure on Aera. This combination allows for risk-adjusted yields that attract significant participation from users.
Currently, more than $1.5 billion in assets are distributed across Gauntlet’s strategies, catering to upwards of 50,000 users directly while also extending reach through partner platforms. Key to Gauntlet's risk assessments and calculations is the CoinGecko API, which serves as a pricing layer to enhance both the quantitative risk models and the Gauntlet App, delivering timely and reliable market data essential for precise risk analysis and asset valuations.
Evaluating Performance Metrics
Gauntlet's economic risk models effectively span billions within the DeFi sector, with its onchain vault strategies managing $1.5 billion in assets across over 50,000 users.
The CoinGecko API feeds real-time figures for vault supplies, individual allocations, and total portfolio valuations within the Gauntlet App, supporting its API/SDK ecosystem.
Identifying the Risk Management Challenge
As Gauntlet forges ahead with evaluating collateral options for its onchain vaults, the requirement for reliable data becomes paramount. The assessment includes analyzing not just value but also liquidity and overall risk. This challenge is amplified by a spectrum of assets that ranges from well-established blue-chip tokens to newer, crypto-native assets. For instance, a vault might contain a stable, highly liquid token one day and an experimental new crypto asset the next, necessitating robust data for effective risk management.
Gauntlet’s approach aims to eliminate dependency on multiple data sources, seeking a singular provider that supports both ends of the asset spectrum with consistent speed and reliability. The need for visibility into the specific liquidity pairs and trading venues linked to each asset underscores the sophistication required in risk assessment.
Why CoinGecko API is Integral for Gauntlet
CoinGecko's extensive market data covers widely recognized blue-chip tokens as well as a range of crypto-native assets aggregated from both centralized and decentralized exchanges, avoiding reliance on a single marketplace. Gauntlet’s integration of the CoinGecko API facilitates programmatic access to this data, enhancing risk models and the user experience within the Gauntlet App.
Insights from Gauntlet
"CoinGecko is a foundational data provider for Gauntlet. Its pricing and market data support timely risk decisions, evaluating new collateral, and monitoring price deviations, while its historical data fills a critical role in backtesting our strategies. It also powers numerous metrics across our app and is a core component of our API/SDK."
— Rei Chiang, Chief Technology Officer at Gauntlet
Harnessing CoinGecko API Effectively
Gauntlet harnesses CoinGecko data for its quantitative risk models, informing asset selection and ongoing risk monitoring. This data serves not only external market evaluations but also feeds directly into the Gauntlet App, presenting vault suppliers with live data.
Vault and Portfolio Valuations within the Gauntlet App
Within the Gauntlet App, each vault displays total supply alongside net annual percentage yields (APY), contributing to the total value locked across Gauntlet's vaults. Using CoinGecko's API, specifically the /simple/token_price/{id} endpoint, Gauntlet efficiently consolidates price data for multiple tokens in a single request, simplifying the task of valuing assets.
Vaults: Total Value Locked and per-vault supply in USD
Details at the position level permit users to view asset allocations by protocol, identifying exactly how capital is dispersed. The Portfolio page of the app also enlightens users about the live USD value of their idle assets across various networks, highlighting potential allocations to Gauntlet’s vaults. To generate accurate portfolio valuations, Gauntlet refers to CoinGecko's /simple/price endpoint, ensuring precise pricing data.
Allocations: Capital allocated across underlying protocols and assets
Idle Assets: Live USD value of assets held outside a vault
Tracking Performance and Liquidity Analysis
In addition to real-time price tracking, Gauntlet utilizes CoinGecko’s historical datasets through the /coins/{id}/market_chart/range endpoint to observe price trends over specific periods. This data aids in evaluating position performance over time and fine-tuning Gauntlet's strategic backtesting.
Position History: Wallet value over time
For asset valuations linked to specific contract addresses, Gauntlet can access precise historical price points using the /coins/{id}/history endpoint, ensuring comprehensive tracking of value shifts.
Liquidity Checks and Risk Validations
Prior to designating assets as collateral, Gauntlet examines liquidity via CoinGecko's /coins/{id}/tickers endpoint. This provides insight into liquidity distributions across various trading pairs, centralizing Gauntlet’s understanding of whether liquidity is widespread or centralized.
Market prices provided by CoinGecko additionally serve as vital references in live risk systems, allowing Gauntlet to identify discrepancies between market and oracle prices, prompting further risk assessments when necessary.
Impact on Business and User Experience
Access to real-time pricing, liquidity assessments, and historical data streamlines Gauntlet’s asset evaluation processes. The consistent market data bolsters ongoing risk monitoring efforts, allowing for timely updates and strategic adjustments.
For users contributing to vaults, uniform pricing across the Gauntlet App ensures accurate representations of total value locked, allocation amounts, and portfolio balance, minimizing discrepancies and enhancing trust in the platform.
Future Developments for Gauntlet
On the horizon, Gauntlet is focused on expanding its onchain vault offerings and the infrastructure surrounding them. Future initiatives will emphasize stablecoin integration and introduction of onchain real-world assets, including new asset types found in prediction markets, tokenized equities, and perpetual futures.
These evolving markets will bring distinct challenges, including a diverse array of asset classes and trading platforms, necessitating broadened access to market data. Gauntlet’s ongoing partnership with CoinGecko ensures that they will be well-equipped to address these requirements, leveraging extensive coverage across both established and nascent assets to inform risk management and valuation strategies. This move towards tokenizing equities also aligns with the rise of real-world asset data, allowing access to vital financial metrics through a single API.
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This content has been created in collaboration with the Gauntlet team.
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