Gauntlet Proposes Emergency Pause for Compound V3 USDC, USDS, USDT Markets on Ethereum

DeFi risk management firm Gauntlet submitted a proposal on November 5 recommending temporary emergency pauses for three Compound v3 Comet lending markets on Ethereum: USDC, USDS, and USDT, the Compound forum post shows. The firm cited liquidity crises affecting Elixir's deUSD and sdeUSD tokens, both listed as collateral across the three markets. The proposal would prevent new borrowing positions and liquidity withdrawals until pending risk parameter updates receive governance committee approval. The recommendation follows Stream Finance's November 4 disclosure of a $93 million fund loss, including $68 million exposure tied to Elixir.