Summary

Gauntlet recommends the following risk recommendations to the protocol:

• Decrease WETH Liquidation Collateral Factor from 84% to 74%
• Decrease cbETH Liquidation Collateral Factor from 80% to 70%
• Decrease WETH Borrow Collateral Factor from 79% to 69%
• Decrease cbETH Borrow Collateral Factor from 75% to 65%
• Decreasee WETH Supply Cap from 11,000 to 1,100
• Decreasee cbETH Supply Cap from 7,500 to 350

Gauntlet also recommends setting the Base USDbC IR curves to the following parameters:

Parameter	Recommended Value
Annual Supply Interest Rate Base	0
Annual Supply Interest Rate Slope Low	0.025
Supply Kink	0.9
Annual Supply Interest Rate Slope High	4.3
Annual Borrow Interest Rate Base	0.025
Annual Borrow Interest Rate Slope Low	0.045
Borrow Kink	0.9
Annual Borrow Interest Rate Slope High	6

Motivation

This recommendation aims to proceed with Compound v3 Base USDbC deprecation.

Full proposal and forum discussions can be found here

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/344