[COMPOUND] [Gauntlet] - IR Curve and Incentive Recommendations for Stablecoin and WETH Comets - Part 5 & Cap recommendations
[Gauntlet] - IR Curve and Incentive Recommendations for Stablecoin and WETH Comets - Part 5 & Cap recommendations
Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase Optimism V3 WETH Comet’s wrsETH Supply Cap from 440 to 520.
- Increase Optimism V3 WETH Comet’s weETH Supply Cap from 600 to 800.
- Increase Mainnet V3 USDC Comet’s cbBTC Supply Cap from 180 to 650.
- Increase Base V3 WETH Comet’s weETH Supply Cap from 4,200 to 15,000.
Along with the above Gauntlet recommends updating the interest rate curves as well as COMP rewards for WETH and Stablecoin Comets. This proposal is Part 5 of the overarching recommendations to be implemented. In this proposal we specifically target Mainnet USDS and Base USDC comet's IR curves.
Stablecoin Comets
| Comet |
|---|
| Ethereum USDC |
| Ethereum USDT |
| Ethereum USDS |
| Arbitrum USDC Native |
| Arbitrum USDT |
| Base USDC Native |
| Polygon USDC |
| Polygon USDT |
| Optimism USDT |
| Optimism USDC |
| Scroll USDC |
| Parameter | Current Value | Recommended Value |
|---|---|---|
| Annual Borrow Interest Rate Base | 0.015 | 0.015 |
| Annual Borrow Interest Rate Slope Low | 0.0333 | 0.05 |
| Borrow Kink | 0.9 | 0.9 |
| Annual Borrow Interest Rate Slope High | 4 | 3.4 |
| Annual Supply Interest Rate Base | 0 | 0 |
| Annual Supply Interest Rate Slope Low | 0.039 | 0.054 |
| Supply Kink | 0.9 | 0.9 |
| Annual Supply Interest Rate Slope High | 3.6 | 3.034 |
Motivation
This recommendation aims to increase supply caps for various assets across multiple Comets. Gauntlet recommends to increase supply caps to increase capital efficiency within the Comets.
Full proposal and forum discussions can be found in the following posts.
- Dec 11
- Dec 16
- Dec 19
- Gauntlet recommends updating the interest rate curve parameters across all WETH and Stablecoin comets to align with market demand. See the the full proposal and forum discussion for more details.
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
Dec 20, 2024Proposal created
Dec 22, 2024Proposal vote started
Dec 24, 2024Proposal vote ended
Mar 26, 2026Proposal updated