[Gauntlet] 2023-10-30: Compound v2 Deprecation (Phase 3)
01Summary
Gauntlet proposes Phase 3 of Compound v2 Deprecation by reducing collateral factors for 7 assets (AAVE, COMP, LINK, MKR, SUSHI, YFI, ZRX) by 5 percentage points each, continuing the planned v2 market deprecation.
- Type
- parameter change
Key changes
- AAVE collateral factor decreased from 68% to 63%(medium)
- COMP collateral factor decreased from 55% to 50%(medium)
- LINK collateral factor decreased from 74% to 69%(medium)
- MKR collateral factor decreased from 68% to 63%(medium)
- SUSHI collateral factor decreased from 62% to 57%(medium)
- YFI collateral factor decreased from 70% to 65%(medium)
- ZRX collateral factor decreased from 60% to 55%(medium)
Notable concerns
- These reductions may impact users who have these assets posted as collateral on Compound v2
- All changes represent the maximum 5% decrease authorized by September 2022 community snapshot vote
Generated by Kvorum
02Description
[Gauntlet] 2023-10-30: Compound v2 Deprecation (Phase 3)
Simple Summary
A proposal from Gauntlet to adjust 7 Compound v2 risk parameters for Phase 3 of the Compound v2 Deprecation.
Gauntlet recommends the following changes:
- Decrease AAVE Collateral Factor from 68% to 63%
- Decrease COMP Collateral Factor from 55% to 50%
- Decrease LINK Collateral Factor from 74% to 69%
- Decrease MKR Collateral Factor from 68% to 63%
- Decrease SUSHI Collateral Factor from 62% to 57%
- Decrease YFI Collateral Factor from 70% to 65%
- Decrease ZRX Collateral Factor from 60% to 55%
For more details, see the full forum post here.
Motivation
In this September 2022 snapshot vote, the community voted that each asset’s Collateral Factor may be reduced by an absolute percentage of up to 5%. After our analysis, Gauntlet recommends this max 5% decrease for each lowly supplied collateral asset in order to further deprecate the v2 market.
Full proposal and forum discussion
Specification
The proposal updates the parameters using the _setCollateralFactor methods of the relevant cToken contracts.
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
The description lists 7 collateral-factor decreases (AAVE 68%→63%, COMP 55%→50%, LINK 74%→69%, MKR 68%→63%, SUSHI 62%→57%, YFI 70%→65%, ZRX 60%→55%) as part of Compound v2 Phase 3 deprecation. The decoded calldata contains exactly 7 _setCollateralFactor calls, all directed at the same target address (the Compound v2 Comptroller, as expected since _setCollateralFactor is a Comptroller function that takes a cToken address as its first argument, not a call made directly on each cToken contract — a minor technical simplification in the spec section that does not affect substance). Converting the calldata mantissa values to percentages in the same order as listed in the description yields 63%, 50%, 69%, 63%, 57%, 65%, and 55% respectively — an exact match to every value claimed in the prose. No extra actions, omitted actions, or value/target mismatches were found. The proposal is fully consistent with its calldata.
Generated by Kvorum
04Actions
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCollateralFactor(address,uint256)
- Arguments
{ "0": "0xe65cdB6479BaC1e22340E4E755fAE7E509EcD06c", "1": "630000000000000000" }- Calldata
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCollateralFactor(address,uint256)
- Arguments
{ "0": "0x70e36f6BF80a52b3B46b3aF8e106CC0ed743E8e4", "1": "500000000000000000" }- Calldata
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCollateralFactor(address,uint256)
- Arguments
{ "0": "0xFAce851a4921ce59e912d19329929CE6da6EB0c7", "1": "690000000000000000" }- Calldata
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCollateralFactor(address,uint256)
- Arguments
{ "0": "0x95b4eF2869eBD94BEb4eEE400a99824BF5DC325b", "1": "630000000000000000" }- Calldata
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCollateralFactor(address,uint256)
- Arguments
{ "0": "0x4B0181102A0112A2ef11AbEE5563bb4a3176c9d7", "1": "570000000000000000" }- Calldata
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCollateralFactor(address,uint256)
- Arguments
{ "0": "0x80a2AE356fc9ef4305676f7a3E2Ed04e12C33946", "1": "650000000000000000" }- Calldata
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCollateralFactor(address,uint256)
- Arguments
{ "0": "0xB3319f5D18Bc0D84dD1b4825Dcde5d5f7266d407", "1": "550000000000000000" }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
- [Gauntlet] Compound v2 Deprecation (Phase 3) (10/27/23) ↗discourse · high confidence
Arguments for
- Collateral factor decreases for low-supplied altcoins align with Phase 3 of the v2 deprecation strategy and reduce risk exposure.— Gauntlet
Arguments against
None surfaced.
Notable participants
- GauntletProposal author and risk analyst providing the deprecation analysis and recommendation.
Generated by Kvorum
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