According to Cointelegraph, financial modeling company Gauntlet upheld the plan since it received a majority of votes.
According to Cointelegraph, the decentralized finance (DeFi) lending platform Compound Finance has accepted a request to limit token borrowing on the protocol to a maximum of 10 tokens.
According to Cointelegraph, on November 28, 2022, financial modeling company Gauntlet upheld the proposition since it received a majority of the vote. It’s estimated that less than 7% of the COMP tokens in circulation were used overall. According to reports, less liquid altcoins on Compound, such as Yearn. finance, had their borrowing caps decreased from 1,500 to 20, along with tokens like Uniswap and COMP, whose respective borrow limitations were formerly 11.25 million and 150,000 and 550,000 and 18,000, respectively.
According to insights from the Gauntlet, based on data from Cointelegraph, the proposal would ensure the prevention of “insolvency risk from liquidation cascades,” “price manipulation Mango squeeze exploits,” “risk of high utilization,” and “risk from shorting assets from a short position on Compound of significant size relative to the circulating supply of the asset.” Gauntlet is claimed to have conducted modeling and risk analysis for the DeFi lending protocol Aave.
Cointelegraph further pointed out that on November 22, 2022, Mango Markets hacker Avraham Eisenberg was discovered to have attempted to abuse the protocol by shorting large quantities of Curve (CRV), which caused the protocol’s liquidation at a loss due to slippage. According to reports, the slippage wasn’t expected, and Eisenberg reportedly lost $10 million during a CRV short squeeze. Additionally, Gauntlet suggested freezing a number of tokens on Aave v2 that could be vulnerable to exploits because of a lack of liquidity.
