[Gauntlet] - USDbC Deprecation Recommendations

Simple Summary

Gauntlet recommends updating the risk parameters and interest rate curve for the Base USDbC comet to expedite its deprecation.

Risk Recommendations

Asset Parameters

| Asset | Parameter | Current Value | Recommended Value | |-------|------------------------|---------------|-------------------| | WETH | Supply Cap | 1100 | 0 | | | Collateral Factor | 69% | 45% | | | Liquidation Factor | 74% | 64% | | | Liquidation Penalty | 5% | 15% | | cbETH | Supply Cap | 350 | 0 | | | Collateral Factor | 65% | 45% | | | Liquidation Factor | 70% | 60% | | | Liquidation Penalty | 15% | 20% |

Interest Rate Curve Recommendations

| Parameter | Current Value | Recommended Value | |----------------------------------------|---------------|-------------------| | Annual Borrow Interest Rate Base | 0.025 | 0.05 | | Annual Borrow Interest Rate Slope Low | 0.045 | 0.035294 | | Borrow Kink | 0.9 | 0.85 | | Annual Borrow Interest Rate Slope High | 6.0 | 3.466667 | | Annual Supply Interest Rate Base | 0.0 | 0.0 | | Annual Supply Interest Rate Slope Low | 0.025 | 0.02 | | Supply Kink | 0.9 | 0.85 | | Annual Supply Interest Rate Slope High | 4.3 | 0.886667 |

Motivation

Full proposal and forum discussions can be found in the following posts.

• [Gauntlet] Base USDbC Deprecation Recommendations (12/5/24)

Specification

The proposal updates the parameters by using the respective methods on the Configurator.

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https://tally.xyz/gov/compound/proposal/428