Gauntlet proposal recommends Compound to urgently suspend the USDC, USDS, and USDT lending markets on Ethereum

Techub News, DeFi research and risk management company Gauntlet has published a proposal on the Ethereum lending protocol Compound forum, recommending a temporary emergency pause for the following independent lending Comet markets in Compound v3, including: USDC on Ethereum, USDS on Ethereum, USDT on Ethereum. Gauntlet stated that it observed liquidity crises for both deUSD and sdeUSD under Elixir, both of which have been listed as collateral on Ethereum USDC, USDS, and USDT. Gauntlet has recommended updating risk parameters (Tally), but these suggestions have not yet been approved by the governance committee. Before the proposal is passed, Gauntlet recommends suspending withdrawals of the affected tokens. This means that new borrowing positions or liquidity withdrawals for Ethereum USDS, USDC, and USDT tokens in Compound v3 will be unavailable.

Yesterday, Stream Finance disclosed a $93 million loss in its fund assets, with Elixir bearing $68 million of the exposure, leading to liquidity crises for Elixir's deUSD and sdeUSD.