[COMPOUND] [Gauntlet] - Stablecoin IR curve recommendations (4/21/25)
[Gauntlet] - Stablecoin IR curve recommendations (4/21/25)
Summary
Gauntlet proposes updating the Interest Rate (IR) curves for all Stablecoin Comets to further align with prevailing market rates. Specifically, we recommend decreasing the borrow APR at the kink from 5.25% to 4% for Stablecoin Comets.
Specification
Given the persistent decrease in utilization observed across all stablecoin comets and additional step-wise reductions of SSR from 6.5% to 4.5%, Gauntlet recommends the below IR curve recommendations for all stablecoin comets.
The recommended curves are for the following comets:
| Comet |
|---|
| Ethereum USDC |
| Ethereum USDT |
| Ethereum USDS |
| Arbitrum USDC Native |
| Arbitrum USDT |
| Base USDC Native |
| Optimism USDT |
| Optimism USDC |
| Polygon USDC |
| Polygon USDT |
| Scroll USDC |
| Parameter | Current Value | Recommended Value |
|---|---|---|
| Annual Borrow Interest Rate Base | 0.015 | 0.015 |
| Annual Borrow Interest Rate Slope Low | 0.04166 | 0.027778 |
| Borrow Kink | 0.9 | 0.9 |
| Annual Borrow Interest Rate Slope High | 3.475 | 3.6 |
| Annual Supply Interest Rate Base | 0 | 0 |
| Annual Supply Interest Rate Slope Low | 0.04725 | 0.036 |
| Supply Kink | 0.9 | 0.9 |
| Annual Supply Interest Rate Slope High | 3.0947 | 3.196 |
Motivation
Full proposal and forum discussions can be found in the following posts.
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
Timeline
Apr 30, 2025Proposal created
May 02, 2025Proposal vote started
May 03, 2025Proposal vote ended
Mar 26, 2026Proposal updated