[COMPOUND] [Gauntlet] - WBTC Risk Recommendations - part 2 (2024-09-10)

Summary

Gauntlet has made the following risk recommendations:

• Increase Liquidation Penalty for WBTC from 5% to 10% on WETH Mainnet
• Increase Liquidation Penalty for WBTC from 5% to 10% across all L2 Comets
• Decrease Supply Cap from 750 to 400 to 750 for WBTC on USDC.e Polygon.
• Decrease Supply Cap from 1200 to 1,000 for WBTC on WETH Arbitrum.
• Decrease Supply Cap from 2000 to 1,000 for WBTC on USDC Arbitrum.
• Decrease Supply Cap from 1200 to 1,000 for WBTC on USDT Arbitrum.
• Decrease Supply Cap from 300 to 200 for WBTC on USDC.e Arbitrum.

Motivation

Gauntlet recommends specific adjustments to the liquidation penalty, supply and borrow caps for WBTC on various Comets given the ongoing speculation across BitGo's and BiTGlobal's joint venture surrounding WBTC custody. The recommendations aim to enhance risk management across WBTC collateral.

Full proposal and forum discussions can be found here: WBTC 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.network/tos

https://compound.finance/governance/proposals/328