[Gauntlet] 2023-07-24 Increase supply cap for WETH, WBTC, UNI, LINK on Ethereum Compound v3 USDC
01Summary
Gauntlet proposes increasing supply caps for four assets on Ethereum Compound v3 USDC: WETH (350k to 500k), WBTC (12k to 18k), UNI (2.3M to 6M), and LINK (1.25M to 4M) to support protocol growth.
- Type
- parameter change
Key changes
- Increase WETH supply cap from 350k to 500k tokens(medium)
- Increase WBTC supply cap from 12k to 18k tokens(medium)
- Increase UNI supply cap from 2.3M to 6M tokens(medium)
- Increase LINK supply cap from 1.25M to 4M tokens(medium)
Generated by Kvorum
02Description
[Gauntlet] 2023-07-24 Increase supply cap for WETH, WBTC, UNI, LINK on Ethereum Compound v3 USDC
Simple Summary
A proposal from Gauntlet to adjust 4 parameters for 4 Ethereum Compound v3 USDC assets.
Gauntlet recommends:
- Increase WETH supply cap from 350k tokens to 500k tokens.
- Increase WBTC supply cap from 12k tokens to 18k tokens.
- Increase UNI supply cap from 2.3M tokens to 6M tokens.
- Increase LINK supply cap from 1.25M tokens to 4M tokens.
For more details, see the full forum post here.
Motivation
In response to recent growth in the Ethereum Compound v3 USDC comet, Gauntlet recommends the above risk parameter changes to allow further protocol usage and growth.
Full proposal and forum discussion
Specification
This proposal updates supply cap on V3 Ethereum USDC market through updateAssetSupplyCap in 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.
03Mismatch analysis
I compared each of the four supply-cap updates in the calldata against the prose claims by converting raw uint128 values using each token's decimal precision: LINK (18 decimals) → 4M tokens, UNI (18 decimals) → 6M tokens, WBTC (8 decimals) → 18k tokens, WETH (18 decimals) → 500k tokens. All four match the description's stated new caps exactly, and all target the same Configurator contract and USDC comet address referenced in the Specification section. The fifth action, deployAndUpgradeTo, is the standard mechanical step required in Compound v3 governance proposals to push configurator changes live via the proxy admin — this is routine boilerplate for this contract type and its omission from the prose is not a meaningful discrepancy. No value, target, or scope mismatches were found; the description accurately and completely represents the on-chain actions being executed.
Generated by Kvorum
04Actions
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- updateAssetSupplyCap(address,address,uint128)
- Arguments
{ "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3", "1": "0x514910771AF9Ca656af840dff83E8264EcF986CA", "2": "4000000000000000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- updateAssetSupplyCap(address,address,uint128)
- Arguments
{ "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3", "1": "0x1f9840a85d5aF5bf1D1762F925BDADdC4201F984", "2": "6000000000000000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- updateAssetSupplyCap(address,address,uint128)
- Arguments
{ "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3", "1": "0x2260FAC5E5542a773Aa44fBCfeDf7C193bc2C599", "2": "1800000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- updateAssetSupplyCap(address,address,uint128)
- Arguments
{ "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3", "1": "0xC02aaA39b223FE8D0A0e5C4F27eAD9083C756Cc2", "2": "500000000000000000000000" }- Calldata
- Target
- 0x1ec6…8779
- Value
- 0 wei
- Function
- deployAndUpgradeTo(address,address)
- Arguments
{ "0": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3", "1": "0xc3d688B66703497DAA19211EEdff47f25384cdc3" }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
- [Gauntlet] Recommendations: Ethereum Compound v3 USDC - Risk Parameter Changes (7/20/23) ↗discourse · high confidence
Arguments for
- Supply caps for WETH, WBTC, UNI, and LINK have reached high utilization rates (60.7%, 77.2%, 100%, and 92% respectively), indicating strong demand that justifies increasing caps to support protocol growth.— Gauntlet
- WETH and WBTC have high liquidity and low volatility, making them safe candidates for supply cap increases.— Gauntlet
- Increasing supply caps will reduce utilization to healthier levels (42.5% for WETH, 51.4% for WBTC, 38.3% for UNI, 28.7% for LINK), allowing sustained long-term protocol usage.— Gauntlet
- UNI and LINK have sufficient daily trading volume to support the recommended supply cap increases without liquidation risk concerns.— Gauntlet
Arguments against
None surfaced.
Unresolved concerns
- Whether there is sufficient on-chain liquidity for liquidating large UNI and LINK positions in case of a liquidation event similar to the CRV situation on AAVE.— tempail
Notable participants
- GauntletProposer and risk analyst providing detailed analysis and responding to community questions about supply cap recommendations.
- tempailCommunity member raising a substantive concern about liquidation risk and on-chain liquidity for UNI and LINK.
Generated by Kvorum
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