[COMPOUND] Risk Recommendations

Summary

Gauntlet recommends the following risk parameters for the listed assets:

Asset	Market	Collateral Factor	Borrow Cap	Supply Cap	Pause Borrows
COMP	Ethereum v2	0%	1	N/A	True
COMP	Ethereum USDC Comet	0%	N/A	1	N/A
USDC	Ethereum USDT Comet	0%	N/A	1	N/A

Analysis

Risk-off Liquidations

The recommended Collateral Factor decreases would not currently cause new liquidatable user positions on Ethereum v2 and USDC/USDT comets.

The below figure shows the top 4 highest borrowing user positions whose Health Factors are less than 1.17 (Borrow Usage greater than 85%) and become > 5% closer to becoming liquidatable after the Collateral Factor decreases.

Lowering the Borrow Caps and Supply Caps on v3 and v3 markets as a precautionary measure.

https://compound.finance/governance/proposals/291