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. Listen below, and subscribe to The Big Brain Podcast on YouTube, Apple, Spotify, or wherever you listen to podcasts. Please send feedback and revision requests to [email protected] 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 SHOW LINKS: - Apple: apple.co/43F3vmq - Spotify: spoti.fi/44NT1lZ - Larry: x.com/lawmaster - Namik: x.com/NamikMuduroglu - The Block Podcasts: x.com/TheBlockPods GUEST LINKS Tarun Chitra - x.com/tarunchitra Gauntlet - x.com/gauntlet_xyz This episode of the Big Brain Podcast is brought to you by our sponsor, Canton Network.The Block Newsletters The Block's newsletters bring you the latest news and analysis of the fast-moving crypto and DeFi markets. To subscribe, visit theblock.co/newsletters Are you hiring in crypto? Use Campus to quickly find your best candidates with our challenging Crypto Assessment Test. Faster hiring, stronger teams.Sign up for a trial today: theblock.co/campusDisclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.