0xb3dd2ca3…3e4dsent to0x683a4f99…6c02·#18,166,638·view on Etherscan
_grantComp(address,uint256)transfer(address,uint256)approve(address,uint256)createStream(address,uint256,address,uint256,uint256) P# Gauntlet <> Compound Renewal 2023
## Background
Since 2021, Gauntlet has worked with Compound to maximize the protocol’s capital efficiency given an acceptable level of market risk.
Full details of the proposal can be found [here](https://www.comp.xyz/t/gauntlet-compound-renewal-2023/4638).
## Proposal
A proposal to renew Gauntlet’s 12-month engagement with Compound on continuous market risk management to maximize capital efficiency while minimizing the risk of insolvency and liquidations to create long-term sustainable growth. Gauntlet renewed its partnership with Compound last year in September, which runs through September 27, 2023.
Gauntlet’s Risk Management platform quantifies risk, optimizes risk parameters, runs economic stress tests, and calibrates parameters dynamically. Gauntlet uses agent-based simulation models tuned to actual market data to model tail market events and interactions between different users within DeFi protocols. Compared to Gauntlet’s [2022 engagement](https://www.comp.xyz/t/gauntlet-compound-renewal/3541), the proposed 2023 renewal has broader coverage of 15 comet deployments and a simpler, more predictable fixed fee structure that is aligned with Compound’s multi-chain vision.
The service fee structure will be a fixed annual fee of $2,000,000, completely in COMP tokens. Using COMP token’s 30-day VWAP price as of EOD Sep 12, which is $42.58, the total COMP token amount for the fixed fee will be 46,970 COMP tokens. 30% (14,091 COMP tokens) will be sent as a lump sum to the insolvency refund vault (0x7667095Caa12b79fCa489ff6E2198Ca01fDAe057), and 70% (32,879 COMP tokens) will be streamed linearly over the course of the year, with the start date of Sep 27, to Gauntlet's address (0xD20c9667bf0047F313228F9fE11F8b9F8Dc29bBa).
In order to facilitate these payments, we transfer 46,970 COMP to the timelock using the `_grantComp` method on the `Comptroller`.
To increase its alignment with Compound, Gauntlet will refund a portion of the payment should Gauntlet's risk parameter optimizations incur losses for the protocol during the engagement. For more details, see the full [proposal](https://www.comp.xyz/t/gauntlet-compound-renewal-2023/4638).
*By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos.*