1/3 @gauntletnetwork just released an in-depth stress test of Compound. It’s worth a read.
Result: Compound is extremely robust, and could safely scale to 10x the volume with minimal default risk.
gauntlet.network
Result: Compound is extremely robust, and could safely scale to 10x the volume with minimal default risk.
gauntlet.network
2/3 They analyze this using agent-based simulations of lenders, borrowers, of liquidators, simulating actual EVM transactions that use a re-creation of the Compound contracts. They repeatedly simulate the worst ever day of Ethereum trading and observe happens to the system.
3/3 It's essential that more people do this kind of actuarial risk analysis as DeFi continues to scale. As more and more capital enters into the ecosystem ($1B!), we have to understand the safe boundaries of how far these systems can be stretched.
(The best part: Gauntlet didn't have to ask anyone for permission for the data to perform this analysis! @ercwl @BlockDebate @udiWertheimer)
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