Introducing the Gauntlet App

Today, we unveiled the Gauntlet App, designed to offer insight into DeFi performance and risk metrics.

At launch, the app provides a detailed view of all Gauntlet-curated Morpho vaults and their key performance and risk metrics, including current and historical APY, market utilization, market allocations, and collateral at risk. 

‍A Data-driven DeFi Platform for Institutions

We built the Gauntlet App to deliver a sophisticated data-driven analysis tailored to institutional needs, providing real-time visibility into Gauntlet-curated vaults in DeFi.

Leveraging offchain and onchain data with economic indicators and advanced modeling, the app provides transparency for onchain value capture and helps optimize asset allocation. As we work with industry-leading protocols across DeFi, the app can provide the necessary insights to transform your DeFi strategy and onboard the next wave of capital onchain.

‍Onboarding TradFi onto DeFi

The importance of DeFi-native vault risk managers for institutional participants is hard to overstate. Their expertise can support institutions as they navigate the space, manage risks effectively, and capture value in a rapidly growing market.

To cultivate a fuller understanding of the opportunities and risks, our data science and applied research teams employ cutting-edge methodologies and a data platform that processes billions of data points to inform powerful models. We apply a level of mathematical rigor familiar in any TradFi shop to help institutions navigate risk-optimized paths and chart cleaner and more efficient journeys to onchain success.

Key Performance and Risk Metrics, All in One Place

As Morpho's largest curator, we optimize vaults for risk-adjusted yields that are resilient enough to handle inherent crypto market volatility. Read more about our curation methodology here. Our curation approach uses a near-real-time data pipeline, which the Gauntlet App leverages to display up-to-date performance and risk metrics on all Gauntlet-curated Morpho vaults. 

We have assigned each vault a “Risk Rating,” ranging from A+ to D. The rating considers various quantitative and qualitative factors from several data sources while also accounting for each vault’s composition. In the coming weeks, we will publish a deep dive into how we developed these ratings. Read more about how we think of Risk Models at Gauntlet here.

Vaults have three main pillars: a supply asset, a vault APY, and allocated markets. Each performance or risk metric on the Gauntlet App provides insight into one of these pillars. 

Annual Percentage Yield (APY)

APY represents the annualized return suppliers receive as a percentage of the assets supplied to a vault. The Gauntlet App offers a historical view of APYs, helping to provide time series-informed performance insights.

APY on a Gauntlet-curated vault is measured in two ways: Native APY and Net APY. Native APY reflects the amount of the supply asset accrued directly from borrowers. Net APY is derived from adding rewards (accrued at the market or vault level) to the Native APY. 

Utilization

We monitor market utilization rates across Gauntlet-curated Morpho vaults to avoid over-leverage and ensure optimal risk-adjusted yield. Market utilization is the key factor determining interest rates for both suppliers and borrowers, and managing it is critical to ensuring long-term sustainability. When new markets are added to any Gauntlet-curated vault, we track utilization changes as supply is allocated across those markets. 

Supply

The supply asset is the foundation of each vault. The Gauntlet App lets you visualize historical supply changes on every Gauntlet-curated vault.

Collateral at Risk

Tracking collateral at risk is vital for managing risk and preventing potential losses. It ensures that positions are sufficiently collateralized and allows us to respond to market volatility and adjust allocations accordingly. 

The chart plots the USD value of the selected collateral assets at risk of liquidation from a percentage price drop in these assets relative to the supply asset

Market Allocation Breakdown

Market allocation is the most impactful action influencing vault composition, with a central role in defining a vault’s risk profile and overall APY. We use fine-tuned Agent-Based Simulations (ABS) that model market scenarios and user interactions within DeFi protocols to optimize for risk-adjusted yield. 

In the coming weeks and months, we will launch additional functionality and publish more content that explores the specifics of the Gauntlet App.

Gauntlet Team