Gauntlet urges a temporary halt to Compound v3 stablecoin lending after major losses in linked platforms triggered liquidity concerns for collateral assets.
On Nov. 7, Gauntlet advised Compound to temporarily pause Ethereum-based USDC, USDS, and USDT lending markets following a liquidity crisis in Elixir’s deUSD and sdeUSD assets. The crisis emerged after Stream Finance disclosed a $93 million loss, with Elixir exposed to $68 million. Withdrawals for USDC and USDS resumed Nov. 6, but Gauntlet’s recommendation aims to mitigate further risks to the protocol by suspending high-risk markets until governance reassesses risk parameters.