Gauntlet restricts V1 gold deposits and suspends asset allocation to address the op-reth vulnerability

DeFi risk management organization Gauntlet has closed the supply queue of its V1 vault, suspended asset allocation, and reduced exposure to LayerZero cross-chain bridge assets following the report of an op-reth vulnerability on certain OP Stack chains. Gauntlet stated that, to its knowledge, there have been no reports of the vulnerability being exploited.

The report indicated that clearing the supply queue will prevent new deposits into the vault, but this measure will not close the withdrawal function or the underlying lending market; withdrawals will still depend on the liquidity available in the underlying market. Gauntlet stated that the relevant measures will remain in place until the issue is resolved, but did not provide a specific recovery timeline.

Gauntlet is a risk curator for DeFi lending protocols, providing risk management services for vaults on protocols like Morpho, responsible for setting collateral parameters, supply caps, and asset allocation strategies. This adjustment involves its V1 vault operating on the relevant chains.