[COMPOUND] [Gauntlet] Ethereum v3 WETH - Interest Rate Curve Recommendations (04/08/2024)

Simple Summary

A proposal from Gauntlet to adjust IR Curve for Compound III WETH on Mainnet:

Parameter	Current	Recommended
Annual Borrow Interest Rate Base	0.005	0.01
Annual Borrow Interest Rate Slope Low	0.030	0.014
Borrow Kink	0.9	0.85
Annual Borrow Interest Rate Slope High	1.0	0.53
Annual Supply Interest Rate Base	0	0
Annual Supply Interest Rate Slope Low	0.023	0.0185
Supply Kink	0.9	0.85
Annual Supply Interest Rate Slope High	1.0	0.45

Motivation

Gauntlet recommends adjusting the Interest Rate Curve in the Ethereum v3 WETH comet to increase utilization and reserve growth. Full proposal and forum discussion

Specification

The proposal updates the the supply/borrow per year interest rate high slope, and the borrow/supply per year interest rate low slope, borrow per year interest rate base and borrow/supply kink 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/239