Gauntlet Pauses Asset Allocation for V1 Vaults Amid op-reth Vulnerability

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DeFi risk firm Gauntlet paused asset allocation for V1 vaults following news of a vulnerability related to op-reth. The firm halted supply queues on certain OP Stack chains and reduced exposure to LayerZero assets. No exploitation has been reported. New deposits are paused, but withdrawals and lending markets remain active. Gauntlet works with protocols such as Morpho, managing collateral and allocation strategies. The adjustment affects V1 vaults on the impacted chains. This move comes as recent digital asset news underscores ongoing security concerns in DeFi.

ChainCatcher report: Following reports of a vulnerability in op-reth on certain OP Stack chains, DeFi risk management firm Gauntlet has shut down its V1 vault supply queues, paused asset allocation, and reduced exposure to assets on the LayerZero cross-chain bridge. Gauntlet stated that, to its knowledge, there have been no reports of this vulnerability being exploited. The report noted that clearing the supply queue will prevent new vault deposits, but this measure alone will not disable withdrawals or the underlying lending markets—withdrawals remain dependent on the liquidity available in the underlying markets. Gauntlet said these measures will remain in place until the issue is resolved, though it did not provide a specific timeline for restoration. Gauntlet is a risk curator for DeFi lending protocols, providing risk management services for vaults on protocols such as Morpho, responsible for setting collateral parameters, supply caps, and asset allocation strategies. This adjustment affects its V1 vaults operating on the relevant chains.

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