[COMPOUND] [Gauntlet] 2024-01-14: Polygon v3 USDC.e - Risk Recommendations

Simple Summary

A proposal from Gauntlet to adjust two risk parameters in the Polygon v3 USDC.e comet.

Gauntlet recommends the following risk parameter change:

• Increase the stMATIC Liquidation Penalty from 7% to 15%
• Increase the MaticX Liquidation Penalty from 7% to 15%

For more details, see the full forum post here.

Motivation

In the Polygon v3 USDC.e comet, both MaticX and stMATIC have reached their full supply cap limits. Considering their current liquidity levels, a Liquidation Penalty of 7% for both MaticX and stMATIC, and a Store Front Price Factor of 60%, Gauntlet recommends not increasing these supply caps. However, to potentially enable future cap increases, and to mitigate risk, Gauntlet proposes raising the Liquidation Penalty values for these assets.

Full proposal and forum discussion

Specification

This proposal updates the Polygon v3 USDC.e comet through the UpdateAssetLiquidationFactor method in the Configurator contract.

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/212