[Gauntlet Proposes Suspension of Compound Ethereum USDC, USDS, USDT Lending Markets]
On November 5, DeFi research and risk management firm Gauntlet proposed on the Compound forum to implement a temporary emergency suspension of the independent lending markets for USDC, USDS, and USDT on Ethereum within Compound v3. Gauntlet pointed out that Elixir's deUSD and sdeUSD are experiencing a liquidity crisis, and these two tokens have been listed as collateral in the Ethereum USDC, USDS, and USDT markets. Gauntlet suggested updating risk parameters, but the proposal has not yet been approved by the governance committee. Before the proposal is passed, it is recommended to suspend withdrawals of the affected tokens, preventing the establishment of new lending positions or liquidity withdrawals for these tokens. Additionally, Stream Finance disclosed yesterday a fund asset loss of $93 million, with Elixir bearing an exposure of $68 million.