[COMPOUND] [Gauntlet] - Risk and IO Recommendations for Arb USDT, Arb WETH, Polygon USDT, Mainnet WETH, and BASE USDC
Summary
Risk Recommendations
| Comet | Parameter | Current Value | Recommend Value |
|---|---|---|---|
| Polygon USDT | WBTC Supply Cap | 90 | 180 |
| BASE USDC | WETH Collateral Factor | 80% | 85% |
| BASE USDC | cbETH Collateral Factor | 75% | 80% |
| BASE USDC | cbETH Liquidation Factor | 80% | 85% |
| BASE USDC | cbETH Liquidation Penalty | 15% | 10% |
| ETH WETH | cbETH Supply Cap | 40,000 | 10,000 |
| ETH WETH | ezETH Supply Cap | 2,900 | 8,000 |
| ARB USDT | WBTC Supply Cap | 250 | 1,200 |
| ARB USDT | WETH Collateral Factor | 78% | 85% |
| ARB USDT | WETH Liquidation Factor | 85% | 90% |
| ARB USDT | WETH Supply Cap | 7,500 | 20,000 |
| ARB USDT | wstETH Collateral Factor | 70% | 80% |
| ARB USDT | wstETH Liquidation Factor | 80% | 85% |
| ARB USDT | wstETH Supply Cap | 1,500 | 5,000 |
| ARB WETH | WBTC Supply Cap | 300 | 1,200 |
| ARB WETH | rETH Supply Cap | 800 | 4500 |
| ARB WETH | weETH Collateral Factor | 82% | 85% |
| ARB WETH | weETH Liquidation Factor | 87% | 90% |
| ARB WETH | weETH Supply Cap | 550 | 6,000 |
| ARB WETH | weETH Liquidation Penalty | 8% | 5% |
| ARB WETH | wstETH Supply Cap | 2,000 | 10,000 |
Incentive Recommendations
| Comet | Parameter | Current Value | Recommend Value |
|---|---|---|---|
| BASE USDC | Daily Borrow Rewards | 8 | 5 |
| BASE USDC | Daily Supply Rewards | 20 | 13 |
| ARB USDT | Daily COMP Borrow | 10 | 30 |
| ARB WETH | Daily COMP Borrow | 4 | 15 |
IR Recommendations for Arb USDT, Polygon USDT, and BASE USDC
| Parameter | Recommended Value |
|---|---|
| Annual Borrow Interest Rate Base | .015 |
| Annual Borrow Interest Rate Slope Low | .05 |
| Borrow Kink | .9 |
| Annual Borrow Interest Rate Slope High | 4.0 |
| Annual Supply Interest Rate Base | 0 |
| Annual Supply Interest Rate Slope Low | .052 |
| Supply Kink | .9 |
| Annual Supply Interest Rate Slope High | 3.6 |
Motivation
Gauntlet recommends these parameter updates to improve capital efficiency within the Comets. The IR recommendations are being proposed for all stablecoins in order to incentivize growth and increase utilization. The risk and rewards recommendations for ARB Comets are meant to improve collateral liquidity and capture incentivized growth. Full proposal and forum discussions can be found at the following links:
- [Gauntlet] Arbitrum USDT/WETH Comet - Risk & Incentive Recommendations (7/19/2024)
- [Gauntlet] BASE USDC Comet Risk and IO Recommendations
- [Gauntlet] Polygon USDT Comet Risk Recommendations
- [Gauntlet] Ethereum WETH Comet Risk Recommendations
- [Gauntlet] Interest Rate Curve Recommendations in Stablecoin Comets (7/19/24)
Specification
The proposal updates the parameters by using the respective methods on the Configurator.
By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos.
Off-Chain Vote
Against
0 HVAXVC0%
For
7 HVAXVC70%
Abstain
3 HVAXVC30%
Timeline
Jul 23, 2024Proposal created
Jul 25, 2024Proposal vote started
Jul 27, 2024Proposal vote ended
Mar 26, 2026Proposal updated