[Gauntlet] - Risk Recommendations

Simple Summary

Gauntlet recommends the following risk recommendations to the protocol:

• Increase Mainnet V3 USDT Comet’s tBTC Supply Cap from 285 to 360
• Increase Mainnet V3 USDT Comet’s weETH Supply Cap from 18,000 to 25,000
• Increase Base V3 WETH Comet’s wrsETH Supply Cap from 700 to 1200
• Increase Base V3 AERO Comet’s cbBTC Supply Cap from 150 to 250
• Increase tBTC Collateral Factor from 76% to 80%
• Increase tBTC Liquidation Factor from 81% to 85%

Furthermore, the following changes to Liquidation Penalty, Collateral Factor and Liquidation Factor across WETH and wstETH in the following comets -

Liquidation Penalty

| Comet | Asset | Parameter | Current Value | Recommended Value | |----------------------------------|--------|----------------------|----------------|--------------------| | V3 Ethereum USDC/USDT/USDS | WETH | Liquidation Penalty | 5% | 7% | | V3 Arbitrum USDC/USDT/USDC.e | WETH | Liquidation Penalty | 5% | 7% | | V3 Optimism USDC/USDT | WETH | Liquidation Penalty | 5% | 7% | | V3 Polygon USDC/USDT | WETH | Liquidation Penalty | 5% | 7% | | V3 Ethereum USDC/USDS | wstETH | Liquidation Penalty | 8% | 10% | | V3 Ethereum USDT | wstETH | Liquidation Penalty | 5% | 10% |

Liquidation Factor

| Comet | Asset | Parameter | Current Value | Recommended Value | |----------------------------------|--------|----------------------|----------------|--------------------| | V3 Ethereum USDT/USDC/USDS | WETH | Liquidation Factor | 90% | 88% | | V3 Arbitrum USDC/USDT | WETH | Liquidation Factor | 90% | 88% | | V3 Arbitrum USDC.e | WETH | Liquidation Factor | 85% | No Change | | V3 Optimism USDC/USDT | WETH | Liquidation Factor | 90% | 88% | | V3 Ethereum USDC/USDS | wstETH | Liquidation Factor | 87% | 85% | | V3 Ethereum USDT | wstETH | Liquidation Factor | 85% | No Change |

Collateral Factor

| Comet | Asset | Parameter | Current Value | Recommended Value | |----------------------------------|--------|----------------------|----------------|--------------------| | V3 Ethereum USDC/USDT/USDS | WETH | Collateral Factor | 83% | No Change | | V3 Arbitrum USDC | WETH | Collateral Factor | 83% | No Change | | V3 Arbitrum USDT | WETH | Collateral Factor | 85% | 83% | | V3 Arbitrum USDC.e | WETH | Collateral Factor | 78% | No Change | | V3 Optimism USDC/USDT | WETH | Collateral Factor | 83% | No Change | | V3 Ethereum USDC/USDS | wstETH | Collateral Factor | 82% | 80% | | V3 Ethereum USDT | wstETH | Collateral Factor | 80% | No Change |

Motivation

Full proposal and forum discussions can be found in the following post.

• Supply Cap
• WETH and wstETH - LP/CF/LF
• tBTC Risk Recommendations

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.xyz/tos

https://tally.xyz/gov/compound/proposal/465