1/ Today we are announcing the launch of our @FalconXGlobal levered RWA strategy, in partnership with @paretocredit and powered by @MorphoLabs vaults.

The strategy uses Pareto FalconX Credit Vault (CV) tokens as collateral to borrow USDC and buy more CV tokens within strict risk parameters set by Gauntlet’s optimization engine.

This collaboration further bridges TradFi and DeFi and marks a major evolution in the composability of Real-World-Assets enabled by permissionless DeFi infrastructure and trusted risk models.

Learn more about the strategy below. 2/ What are @paretocredit Credit Vaults?

Pareto Credit Vaults are onchain structured credit facilities that bring institutional-style lending into DeFi. They enable protocol-to-business (P2B) lending, allowing DeFi liquidity providers to fund loans to institutional borrowers (e.g. @FalconXGlobal) under transparent, fixed terms.

The FalconX Credit Vault is curated by experienced credit underwriter @M11Credit and backed by layers of structural features designed to reduce credit risk, including an equity tranche, collateralization, and covenant frameworks.

Vault assets are managed through institutional-grade risk engines and liquidation systems, giving lenders access to credit exposure with default rates historically lower than 1% while maintaining composability across DeFi.

1/ Today we explore the rise of AI Agents in DeFi, and how they might reshape the yield landscape.

There are 3 main types of AI Agents in DeFi:

1. Research Agents provide insights and analysis on markets or tokens via LLM interaction

2. UI Agents replace DeFi interfaces, enabling users to interact with protocols through chat-based interfaces

3. Execution Agents autonomously deploy strategies, such as yield farming or trading. These often do not use LLMs in the UI

Some agents span multiple categories, for example by combining insights with automated execution.

Recently, Execution Agents focused on yield have seen rapid growth.

Let’s dive into this subcategory 🧵 2/ Yield Optimization Agents are Execution Agents that target yield generation within specific parameters, such as whitelisted vaults or pre-approved assets.

The core thesis is that AI can outperform rule-based systems by making more responsive and informed allocation decisions, without requiring constant user input.

Progressively, these agents may integrate user preferences like risk tolerance or coordinate as agent swarms for more adaptive execution.

There are additional risks to consider. Smart contract risk increases with an additional layer of agentic interaction, and most of these emerging protocols are not battle-tested.

Still, interest is growing.

From first-party data of AI Agents protocol, stablecoin-focused AI Agent TVL passed ~$20M in June 2025, mainly on @base .

1/ How does our curation engine generate risk-adjusted yield?

Institutional-grade modeling

Gauntlet USD Alpha was not just built to chase yield. Our engineers employ methodologies that optimize allocations for sustainable yield while building resilience to market volatility.👇

https://twitter.com/1075280745000620032/status/1937514859018764763

2/ Variables we consider

• TVL impact: how allocation size affects performance
• Market conditions: adjustments based on anticipated market shifts
• Liquidity: tracking real-time DEX and vault liquidity
• Sustainability: expected yield calculated over 30-day rolling period

1/ Gauntlet USD Alpha is Live

The best risk-adjusted stablecoin yield in DeFi, powered by institutional-grade risk management from crypto's most vigilant, quantitative minds.

Learn more and supply the vault 👇 2/ Supplying the vault

Anyone can supply USDC to the vault, built on @base and accessible on the Gauntlet App.

To start, we will allocate to @MorphoLabs vaults on Mainnet and Base. Rewards are automatically swapped to USDC and compounded.

gtUSDa vault: app.gauntlet.xyz/vaults/gtusda

1/ A year of LRTs reveals a clear signal: they've emerged as premier collateral assets in lending markets.

Our latest LRT Market Risk dashboard update unveils the leverage dynamics powering leading @eigenlayer LRTs: weETH, rsETH, ezETH, pufETH, and rswETH. @eigenlayer 2/ LRT leverage data

Our dashboard now includes a range of LRT leverage metrics, including:

Liquidatable collateral
Liquidation $ amounts at 2% slash and 25% drawdown
Recursive positions — liquidation by slash size
Non-recursive positions — liquidation by $ drawdown

1/ Tracking the Usual USD0++ Chain of Events and Our Approach

Timeline
4:56PM ET: Usual notified us and other curators that unconditional 1:1 redemption of USD0++ on the primary market is now over, via Telegram. 2/ ~4:57PM ET: simultaneous public tweet announcement and blog post that Unconditional 1:1 redemption of USD0++ to USD0 would end, replacing it with 2 mechanisms: a new 0.87 price floor, and a 1:1 Early Unstaking mechanism for USD0++ → USD0, which will be available early next week (holders forgoe any earned yield on the USD0++).

x.com/usualmoney/sta…

1/ Introducing hJLP — Delta-Hedging for JLP

We've partnered with @DriftProtocol to build a delta-hedged JLP vault, leveraging @JupiterExchange's innovative Liquidity Provider token (JLP).

This structured product builds on our experience in risk management and vault curation. @DriftProtocol @JupiterExchange 2/ Rapid early growth

The hJLP vault has surpassed $1M in total deposits and is nearing its initial cap. As we assess vault growth over the coming weeks, we will raise the cap as necessary to balance the risk-adjusted return.

1/ @JupiterExchange Market Update Oct. 14 - Oct. 21

SOL trader PnL surged this week, with BTC and ETH trader PnLs showing modest WoW increases. More info in the thread. @JupiterExchange 2/ SOL Win Rate and PnL Chart

• Win Rate: 45.8%
• Net PnL: $8.2M
• Gross PnL: $12.98M

Net and gross SOL trader PnL continued its upward trajectory over the past week, as trader win rate remained even WoW.

1/ @JupiterExchange Market Update Oct. 8 - Oct. 15

Over the past week, net trader PnLs for SOL and BTC were up from the week prior. Details in the thread. @JupiterExchange 2/ SOL Win Rate and PnL Chart

• Win Rate: 45.9%
• Net PnL: $425.98K
• Gross PnL: $4.17M

Net and gross trader PnL were up WoW, while the trader win rate was slightly lower.

1/ @JupiterExchange Market Update Sept. 30 - Oct. 7

With the market trading sideways with some dips, overall SOL, BTC, and ETH trader PnLs were down last week. @JupiterExchange 2/ SOL Win Rate and PnL Chart

• Win Rate: 47.2%
• Net PnL: -$7.44M
• Gross PnL: -$2.31M

Despite high levels of total open interest at $1.43B, remaining profitable last week was difficult, likely due to market conditions.

1/ Today, we take a deep dive into our Morpho vault curation strategy. 🔎

Since mid-March, we’ve launched a dozen Gauntlet-curated Morpho vaults that generate risk-adjusted yield by providing exposure to lending markets with varying risk profiles.

In this thread, we'll cover:

🔹 Morpho Vault Structure
🔹 Market Allocation Strategy
🔹 Strategic Adjustments

🧵👇 2/ First, let's cover how we categorize our vaults:

Prime vaults primarily allocate liquidity to blue-chip markets and maximize risk-adjusted yield while targeting a minimal risk of insolvent debt.

Core vaults offer exposure to markets with higher yields that may come with incrementally more risk.

Explore all Gauntlet-curated vaults here: app.gauntlet.xyz/protocols/meta…

1/ A few weeks ago, we published a thread on AVS allocation research we've been doing for @ether_fi. Today, we publish the full report!

The report covers:

1️⃣ AVS commitments
2️⃣ Impacts of adding AVSs
3️⃣ Optimal allocations to ensure $eETH maximizes risk-adjusted yield

👇🧵 @ether_fi 2/ Given payments and slashing are not live, this framework remains theoretical.

We start off by determining an initial restake per operator given @ether_fi's existing commitments and operator set.

1/ We added additional LRT and LST markets to the Gauntlet LRT Core MetaMorpho vault on @MorphoLabs to diversify collateral risk and optimize for yield.

Newly added markets are outlined below 🧵👇 @MorphoLabs 2/ $pufETH, a native LRT by @puffer_finance, generates restaking rewards through native restaking on @Eigenlayer.

Details: the pufETH/WETH market has an LLTV of 86%, an initial supply cap of 1,000 WETH, and uses the @redstone_defi market rate oracle.

1/ With LRTs continuing to garner significant adoption, a framework for evaluating risks is paramount for users to understand the market risk landscape for each token.

Today, we published a blog on LRT market risk as part of our partnership with @EigenLayer.

Let's dive in👇🧵 2/ Our LRT Risk Framework is broken down into 4 attributes:

1️⃣ External Liquidity
2️⃣ Withdrawals
3️⃣ Volatility
4️⃣ DeFi Risk

Read on for more on how we define and evaluate these.

🚀We are excited to launch our @synthetix_io Risk Dashboard!

The dashboard will help the community understand how Gauntlet’s recommendations mitigate risk and increase capital efficiency for the protocol👇

gov.gauntlet.network/synthetix Gauntlet has now built the infrastructure to ingest market data and run simulations and economic stress tests on the @synthetix_io ecosystem.

Our mission is to drive understanding and participation in the financial systems of the future.

We're hiring across the board to do so!

https://twitter.com/sonalibasak/status/1503431628496027649

How hard are these problems? tl;dr very hard

"We are taking on the formidable engineering challenges associated with building predictive models of aggregate user behavior across DeFi" @ChiangRei, Co-Founder / CTO. "We leverage our Agent Based DSL to run thousands...

Given the astounding run-up in $AMPL price and market cap, much has been said about its mechanism.

We took a closer look at AMPL — analyzing the token's historical and trading behavior observed across exchanges.

gauntlet.network/reports/amplef… We explored strategies that AMPL traders might build upon, particularly around rebase events.

From this analysis, we observed what you might expect: rebase events have in practice driven traders to trade around them (there is an increase in trading before & after the event).