Gauntlet on The DeFi Drop

Guest: Jon Libby, BD, Gauntlet
Host: Edward Ward, Portals.fi

In this episode of The DeFi Drop, Edward Ward sits down with Jon Libby, BD from Gauntlet to discuss how the company is transforming institutional‑grade vault strategies with risk‑adjusted yield in decentralized finance.

Gauntlet is already known for its advanced risk modeling and infrastructure that secures billions across the DeFi ecosystem. Now it is channeling that expertise directly into vault strategies built for sustainable, optimised yield.

“We’re building non‑custodial yield opportunities that use Gauntlet’s risk management expertise and strategies to create really good opportunities for users to get a risk‑adjusted yield in crypto,” Jon explained.

Risk‑Adjusted Yield Versus Chasing APY

A core theme in the conversation is Gauntlet’s approach to yielding results while managing risk. Instead of just chasing the highest APY metrics, Gauntlet’s engine evaluates multiple protocols and strategies, classifies them into risk categories: Prime, Core and Frontier, and allocates accordingly.

“We’re not just max looping and hoping for the best. We design optimised yields based on the risk profile of each strategy so we can always withdraw if something happens,” Jon said.

This method allows Gauntlet to outperform many traditional vaults while maintaining a strong emphasis on capital safety and liquidity.

Real Yield Over Token Incentives

Jon also talks about how Gauntlet differentiates its vaults by focusing on stable yields rather than volatile token‑emissions.

“It’s cool to get a token, but it’s even better to get dollars. As the ecosystem matures, USDC yield is the golden ticker everyone’s chasing,” he explained.

Their vaults are built to deliver returns denominated in dollars, rather than relying on unpredictable reward tokens. This shift aligns with the growing institutional demand for predictable and transparent yield.

Vault Expansion and Security

Edward and Jon explore the potential for new vault products beyond stablecoins, particularly those involving ETH and WBTC. Jon explains that each new strategy goes through deep demand analysis, liquidity assessment and strict risk controls before launch.

Security remains a major priority. Gauntlet uses liquidity management, stress‑testing and oracle review to ensure vault resilience even under extreme market conditions.

“User funds are always a priority. We backtest, stress test, and build automated guardrails to protect users from market shocks,” Jon emphasised.

Integrations and Ecosystem Partnerships

Gauntlet’s vault strategies are built on platforms like Aera and integrate across protocols such as Morpho Labs and Pendle Finance. Aera provides the underlying infrastructure for Gauntlet’s yield aggregator strategies, with built‑in “risk‑off” guardrails and sentinel systems for market stress events.

Jon highlights that partnerships are driven by product demand and user‑need, followed by distribution through platforms such as Portals.fi. This ecosystem‑driven model allows Gauntlet to scale vault offerings to a global audience.

The Future of Risk in DeFi

Looking ahead, Jon shares his view on how risk‑adjusted yield products will shape DeFi’s next phase, especially as institutional capital enters the ecosystem.

“People want real USD yield, the ability to choose their risk profile, and full on‑chain transparency. We want to be the pillar for fintechs and institutions to build on,” Jon said.

Gauntlet positions itself as a central platform for risk‑managed yield, for DeFi natives as well as for fintech firms and institutions integrating DeFi infrastructure.

The DeFi TVL Prediction Game

To wrap up the episode, Jon participated in the customary DeFi Drop prediction moment. With DeFi TVL currently around US$150 billion, his forecast for December 31 2025:

“We’re still in the boom cycle. As long as we keep growing responsibly and avoiding the shocks like last Friday, $200B isn’t out of the question,” he said.

Gauntlet’s blend of rigorous risk control, institutional discipline and DeFi‑native strategy design positions it as a key player in the next era of vault‑yield architecture.

About Gauntlet

Gauntlet (https://www.gauntlet.xyz/) is a quantitative research and risk‑management platform for decentralized finance, specialising in vault strategies and economic simulations. The firm supports protocols and institutions by modeling market behaviours, optimizing incentives and reducing systemic risk across chains.

About Portals.fi

Portals.fi is the DeFi Super App, a one‑click gateway to the on‑chain economy. With real‑time data and seamless execution, Portals.fi connects traders to over 20 million assets, thousands of protocols and every major blockchain.

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