Gauntlet is excited to support Perennial V2 as a launch partner and ongoing risk management contributor. Perennial V2 is the latest and most advanced version of the Perennial derivatives protocol, which provides fast, cheap, and efficient perps trading.
Robust risk management is crucial to the sustainable operation and growth of perps protocols. Ensuring safety and efficiency requires a wide range of ongoing adjustments, from optimizing leverage and asset listings to fine-tuning funding rates and fees. To start, Gauntlet will perform a risk analysis of Perennial V2 and create specialized risk models. These models will operate continuously to provide real-time risk management insights and actionable recommendations on key risk parameters, including:
- Maker and Taker Limits
- Maintenance Margin Parameters
- Liquidation and Position Fee Parameters
- Interest Rate and PID Parameters
Finally, Gauntlet will soon publish a custom risk dashboard, which will contain key risk and utilization metrics and info on Gauntlet’s latest recommendations. To keep up with the dashboard launch and other news on the partnership, follow Gauntlet and Perennial for more updates.
Perennial is an on-chain derivatives protocol built from first principles to be a DeFi primitive. The core protocol is minimalist, flexible, and efficient, allowing Perennial to mold to the needs of many different users and use cases. Perennial is focused on growing the DeFi ecosystem by enabling new markets, structured products, and trading applications upon a shared liquidity layer.
Gauntlet is a DeFi-native quantitative research firm specializing in risk management, incentive optimization, and mechanism design. Gauntlet uses battle-tested techniques from the algorithmic trading industry to help protocols manage risk, optimize revenue, and design better incentives. Our simulation models inform parameter decisions for protocols of all sizes, covering over 25% of aggregate DeFi TVL.