Gauntlet, a crypto-native financial risk management solutions provider, has launched a new research division and received a grant from the Uniswap Foundation.
The new division, Gauntlet Applied Research, aims to address the most pressing challenges within the crypto space by offering protocols custom quantitative analysis, modelling, and optimisation, enhancing its existing capabilities within risk management decentralised finance.
For its first initiative, it has secured a grant from the Uniswap Foundation to review and recommend incentive program optimisations for the Uniswap Protocol.
Uniswap funds and supports work that looks to further the development and growth of the DeFi ecosystem. The Uniswap Protocol is a decentralised cryptocurrency exchange that leverages smart contracts to execute trades.
With over 4,000 decentralised autonomous organisations (DAOs) in existence, Gauntlet claims the demand for organising community members around one central mission has increased. Gauntlet Applied Research was created to pair the company’s modelling and simulation platform with a dedicated research team to address challenges related to how DAOs operate and grow.
Gauntlet co-founder and CEO Tarun Chitra said, “In an effort to support the crypto ecosystem, we want a wider range of protocols to be able to access our leading financial modelling platform, team, and experience.
“There are many dimensions to operating a protocol well, and DAOs must proactively address a broad set of economic issues to ensure success. Gauntlet Applied Research will be able to draw on our proven success in crypto-native economic research and our methodologies, to help DAOs address these issues.”
The initial project will explore how incentive programs would impact the Uniswap Protocol’s users’ behaviours and how the Uniswap community can align and execute on shared objectives. The deliverables for the project will follow a three-step plan to evaluate, test, and recommend incentive program archetypes for the community to consider.
The first deliverable is a quantitative framework for the Uniswap community to use in judging the success of the Uniswap Protocol as a whole. This framework would include a theoretical economic analysis of the Uniswap Protocol from the perspective of UNI token holders as well as include a methodology to evaluate the current and future net present value of protocol revenue based on the growth and market share of the Uniswap Protocol.
Deliverable two is a historical analysis of LP and trader cohorts in response to evolving market conditions and prices. This will leverage insights from the Gauntlet platform and existing research to forecast how traders and LPs would respond to incentive programs.
The final deliverable is a list of three potential incentive program archetypes. This evaluation will explore trade-offs between incentives and culminate in a final recommendation for which type of initiative will most likely be a success.
In other crypto news, Xclaim raised $7m for its Series A funding round. The FinTech company claims to be the only independent trading platform for crypto assets locked by bankruptcy.
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