Frequently Asked Questions about Gauntlet

What is Gauntlet and what does it do?

Gauntlet is a leading DeFi risk management and vault curation platform. It provides institutional-grade quantitative risk modeling to help users access the best risk-adjusted yield strategies in decentralized finance. Gauntlet curates and manages vaults across multiple blockchains — including Ethereum, Base, Arbitrum, and Optimism — built on top of protocols like Morpho. The platform actively monitors and rebalances allocations to maximize yield while managing risk exposure on behalf of depositors.

How does Gauntlet differ from other DeFi yield platforms?

Unlike passive yield aggregators, Gauntlet applies advanced quantitative risk models originally developed for institutional finance. The team actively manages risk parameters, monitors collateral quality, and rebalances vault allocations in real time. Gauntlet categorizes strategies by risk tier — from conservative Prime Lending vaults to higher-yield Frontier Lending — so users can choose the risk/reward profile that suits their goals. With over $1.2B TVL, Gauntlet has a proven track record of protecting depositor capital.

Which blockchains does Gauntlet support?

Gauntlet currently supports Ethereum mainnet, Base, Arbitrum, and Optimism. The Earn strategy vaults operate across all four chains simultaneously, allowing for diversified cross-chain yield. Prime Lending, Balanced Lending, and Frontier Lending vaults may be deployed on specific chains depending on liquidity and protocol availability. Gauntlet continues to expand to additional networks as the DeFi ecosystem grows.

What vault strategies does Gauntlet offer?

Gauntlet currently offers five distinct vault strategy types:

Earn — Opinionated vaults capturing the best risk-adjusted DeFi opportunities across multiple protocols and chains. APY up to 9.09%, total supply $105M.

Prime Lending — Conservative vaults with bluechip, highly liquid collateral assets. Very low insolvency risk. APY up to 4.50%, total supply $785M.

Balanced Lending — Higher yield with a blend of bluechip and small-cap collateral. APY up to 8.73%, total supply $283M.

Frontier Lending — Maximum yield with active monitoring and allocation management. APY up to 5.72%, total supply $88.8M.

Restaking — Vaults allocating across networks and operators for points and yield. Total supply $5.03M.

How are APY rates calculated in Gauntlet vaults?

APY (Annual Percentage Yield) in Gauntlet vaults reflects the annualized rate of return based on recent vault performance and underlying protocol interest rates. Rates fluctuate based on supply and demand dynamics in the underlying lending markets (primarily Morpho), as well as Gauntlet's allocation decisions across markets. Displayed APYs are not guaranteed and may change as market conditions evolve. Gauntlet actively manages allocations to seek optimal risk-adjusted returns within each strategy's parameters.

What tokens can I deposit into Gauntlet vaults?

Gauntlet vaults support a range of supply tokens depending on the specific vault. Common supply tokens include USDC (available on Ethereum, Base, Arbitrum, and Optimism), cbBTC (Coinbase Bitcoin on Ethereum), WETH, and other major assets. Each vault clearly displays its accepted supply token. Featured vaults include the Gauntlet USD Alpha vault (USDC, cross-chain), Gauntlet BTC Yield (cbBTC, Ethereum), and Gauntlet USDC Prime v2 (USDC, Base). Browse all vaults to find the right asset for your portfolio.

How does Gauntlet manage risk in its vaults?

Gauntlet employs a multi-layered risk management approach. The team uses proprietary quantitative models to assess collateral quality, liquidation risk, and market liquidity for every asset and market within a vault's allocation. Risk parameters — including supply caps, loan-to-value ratios, and liquidation thresholds — are continuously monitored and adjusted. Gauntlet categorizes each vault by risk tier so users understand the expected risk profile. Additionally, all smart contracts undergo external security audits before deployment. The platform has managed over $1.2B without major insolvency events.

Are Gauntlet smart contracts audited?

Yes. Gauntlet vaults are built on top of the Morpho protocol, which has undergone multiple independent security audits by leading firms. Gauntlet's own vault configurations and risk parameters are reviewed as part of its security process. However, as with all DeFi protocols, smart contract risk cannot be entirely eliminated. Users should review the available documentation, audit reports, and terms of service before depositing. Gauntlet publishes a disclaimer that outlines relevant risks, accessible via the footer of the app.

What are the risks of depositing into Gauntlet vaults?

Depositing into Gauntlet vaults involves several risks inherent to DeFi:

Smart contract risk — Bugs or exploits in the underlying Morpho protocol or vault contracts could result in loss of funds.

Market risk — Rapid price movements in collateral assets may outpace liquidation mechanisms, causing bad debt.

Liquidity risk — In extreme market conditions, withdrawals may be delayed if vault liquidity is insufficient.

Oracle risk — Price feed manipulation or failure could affect liquidation accuracy.

Gauntlet actively mitigates these risks through its risk management framework, but users should deposit only what they can afford to lose and review the terms of service and disclaimer.

How do I deposit funds into a Gauntlet vault?

Getting started with Gauntlet is straightforward:

1. Visit app.gauntlet.xyz and click "Connect Wallet."

2. Connect a compatible Web3 wallet (MetaMask, Coinbase Wallet, WalletConnect, and more are supported).

3. Browse the Vaults page and select a strategy that matches your risk tolerance and desired supply token.

4. Click "View vault," review the vault details, then enter the amount you wish to deposit and confirm the transaction.

5. Your yield begins accruing immediately after deposit. You can monitor your positions in the Portfolio section.

How do I withdraw funds from a Gauntlet vault?

Withdrawing from a Gauntlet vault is generally straightforward. Navigate to your Portfolio, find the vault position you wish to exit, and submit a withdrawal transaction. Most vaults support immediate withdrawals subject to available liquidity in the underlying Morpho markets. In rare cases of high utilization, there may be a short delay until borrowers repay or liquidity becomes available. There are no Gauntlet-imposed lock-up periods on standard vault deposits.

Does Gauntlet charge any fees?

Gauntlet may charge a performance fee on vault yield as compensation for its active risk management and curation services. Fee details are disclosed on each individual vault's page before you deposit. There are no hidden fees. Network gas costs for deposit and withdrawal transactions are paid by the user directly to the blockchain and are not controlled by Gauntlet. Always review vault-specific terms on the app before depositing.

Where can I find documentation and resources for Gauntlet?

Comprehensive documentation for Gauntlet vaults and strategies is available at vaultbook.gauntlet.xyz. The VaultBook covers vault mechanics, risk frameworks, strategy descriptions, and integration guides. For general company information, research, and updates, visit gauntlet.xyz/resources. You can also follow Gauntlet on X (Twitter) and LinkedIn for the latest news and announcements.