According to ChainCatcher, DeFi risk management firm Gauntlet closed the supply queues for its V1 vaults, paused asset allocations, and reduced exposure to LayerZero bridge assets after reports of an op-reth vulnerability on some OP Stack chains. Gauntlet said it was not aware of any reports that the vulnerability had been exploited.
Closing the queues blocks new vault deposits but does not disable withdrawals or the underlying lending markets. Withdrawals remain subject to available liquidity in those markets. Gauntlet said the measures will stay in place until the issue is resolved, without providing a timeline for resuming operations.
Gauntlet provides risk management for vaults on DeFi lending protocols, including Morpho, and sets collateral parameters, supply caps, and allocation strategies. The changes affect its V1 vaults operating on the relevant chains.