Gauntlet CEO Tarun Chitra on why exchange ADL mechanisms need an update
Episode 10 of The Big Brain Podcast, hosted by The Block President Larry Cermak and MegaETH CSO Namik Muduroglu, was recorded with Gauntlet founder and CEO Tarun Chitra.
In episode 10 of The Big Brain Podcast, Larry and Namik are joined by Gauntlet founder and CEO Tarun Chitra. Tarun recounts how an unexpected ADL event on a low-leverage position pushed him to research how exchanges handle insolvency when liquidations fail, especially after October 10th. He argues the common ranking approach concentrates losses unfairly and may overshoot during cascading events. The discussion also covers transparency, insurance funds, and why improving these systems matters if perp exchanges want to onboard new users.
OUTLINE
00:00:00 - Introduction
00:00:54 - Tarun’s background
00:10:50 - Tarun's ADL paper
00:15:40 - ADL usage
00:26:25 - Transparency gap
00:31:44 - Critiques of Tarun's paper
00:36:32 - Impact of Tarun's paper
00:41:09 - Potential fixes
00:45:31 - Cult-like communities in crypto
00:52:42 - 10x verticals looking ahead
01:02:29 - Conclusion
GUEST LINKS
Tarun Chitra -
Gauntlet -
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