Gauntlet broadly supports the proposal for streamlining non-critical parameter updates through CapRiskSteward and acknowledges the importance of operational speed and market efficiency.
Given Gauntlet’s role in Euler’s risk management, we recommend incorporating a brief acknowledgment window (~24 hours) prior to executing CapRiskSteward transactions. This would provide sufficient time to surface any immediate risk-specific feedback without materially affecting the intended speed of execution.
We are aligned with all recommendations except for a minor adjustment to the eUSDe IRM parameters on Yield:
Set the IRM kink at 80% with a kink borrow APY at 7%, considering:
- Observed collateralization ratios and profiles, as well as borrower looping behavior for PT-eUSDe/eUSDe since our initial recommendation.
- The observed downward trend in Pendle implied APY, which informs a more accurate and market-responsive IRM setting.
This adjustment preserves borrower accessibility while aligning with prudent risk management.