[COMPOUND] [Gauntlet] USDC Comets - Interest Rate Curve & Reward Recommendations (3/11/24)
Simple Summary
A proposal from Gauntlet to adjust IR Curves and Incentives to v3 Comets USDC Ethereum, USDC Arbitrum, and USDC Polygon.
We recommend the following Incentives to v3 Comets USDC Arbitrum, and USDC Polygon:
| Markets | Daily COMP Supply Rewards (Tokens) | Daily COMP Borrow Rewards (Tokens) | Recommended Daily COMP Supply Rewards (Tokens) | Recommended Daily COMP Borrow Rewards (Tokens) |
|---|---|---|---|---|
| Compound III USDC (Arbitrum) | 20 | 20 | 17 | 8 |
| Compound III USDC (Polygon) | 34.7 | 34.7 | 16 | 7 |
We recommend the following IR curves to v3 Comets USDC Ethereum, USDC Arbitrum, and USDC Polygon:
| Parameter | Recommended Value |
|---|---|
| Annual Supply Interest Rate Base | 0 |
| Annual Supply Interest Rate Slope Low | .075 |
| Supply Kink | .9 |
| Annual Supply Interest Rate Slope High | 3.6 |
| Annual Borrow Interest Rate Base | .015 |
| Annual Borrow Interest Rate Slope Low | .0833 |
| Borrow Kink | .9 |
| Annual Borrow Interest Rate Slope High | 4.3 |
For more details, see the full forum post here.
Motivation
Given the rising demand for USDC borrowing and the maturity of existing USDC comets, Gauntlet proposes updating the IR borrow curves and incentives to increase capital efficiency. Full proposal and forum discussion
Specification
The proposal updates the base tracking borrow and supply speeds, the supply/borrow kink, the borrow/supply per year interest rate high slope, the borrow/supply per year interest rate low slope and the supply/borrow interest rate base 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
Against
0 HVAXVC0%
For
9 HVAXVC81.8%
Abstain
2 HVAXVC18.2%
Timeline
Mar 12, 2024Proposal created
Mar 14, 2024Proposal vote started
Mar 16, 2024Proposal vote ended
Apr 03, 2026Proposal updated