KVORUM
compoundSource: Compound governor bravo · #229

[Gauntlet] USDC Comets - Interest Rate Curve & Reward Recommendations (3/18/24) - Part 2

executedMar 23, 2024, 09:58 AM UTCby680x683a…6c02

01Summary

AISummary by Kvorumclaude-haiku-4-5

Gauntlet proposes reducing COMP incentive rewards for USDC markets on Ethereum and Base to increase capital efficiency. USDC Ethereum supply rewards decrease from 257.4 to 151 tokens daily, borrow rewards from 100 to 71 tokens daily. USDbC Base supply rewards decrease from 30 to 9 tokens daily, borrow rewards from 15 to 4 tokens daily.

Type
parameter change

Key changes

  • Reduce USDC Ethereum daily COMP supply rewards from 257.4 to 151 tokens(high)
  • Reduce USDC Ethereum daily COMP borrow rewards from 100 to 71 tokens(high)
  • Reduce USDbC Base daily COMP supply rewards from 30 to 9 tokens(high)
  • Reduce USDbC Base daily COMP borrow rewards from 15 to 4 tokens(high)
  • Update interest rate borrow curves for USDC markets(medium)

Notable concerns

  • Significant reduction in incentive rewards may impact borrower and supplier participation in USDC markets
Contracts0xc3d688B66703497DAA19211EEdff47f25384cdc30x316f9708bb98af7da9c68c1c3b5e79039cd336e30x1ec63b5883c3481134fd50d5daebc83ecd2e87790x866e82a600a1414e583f7f13623f1ac5d58b0afa
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provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
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02Description

204 words

[Gauntlet] USDC Comets - Interest Rate Curve & Reward Recommendations (3/18/24) - Part 2

Simple Summary

This is a proposal from Gauntlet to adjust the Incentives for v3 Comets USDC Ethereum and USDbC Base. This proposal is the 2nd part of our Interest Rate Curve & Reward Recommendations.

MarketsDaily COMP Supply Rewards (Tokens)Daily COMP Borrow Rewards (Tokens)Recommended Daily COMP Supply Rewards (Tokens)Recommended Daily COMP Borrow Rewards (Tokens)
Compound III USDC (Ethereum)257.410015171
Compound III USDbC (Base)301594

For more details, see the full forum post here.

Motivation

Given the rising demand for USDC borrowing and the maturity of existing USDC comets, Gauntlet proposes updating the IR borrow curves and incentives to increase capital efficiency. Full proposal and forum discussion

Specification

The proposal updates the base tracking borrow and supply speeds 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.

03Mismatch analysis

AIMismatch analysis by Kvorumclaude-sonnet-5
Consistent

I converted the on-chain uint64 speed values using the standard Comet formula (dailyTokens = speed/1e15*86400) and found they reproduce the exact recommended daily COMP figures in the proposal table: 151/71 for Ethereum USDC (actions 0-1) and 9/4 for Base USDbC (embedded in the cross-chain sendMessage payload in action 3). The deployAndUpgradeTo calls (actions 2 and the one bundled in action 3) are routine mechanics required to apply Configurator changes to the live Comet proxies on each chain, consistent with the Specification's description of using 'the respective methods on the Configurator.' The cross-chain sendMessage action is a standard bridging mechanism for Base-side changes and is not separately called out in the prose, but it does not introduce any new or divergent behavior — it merely encodes the same parameter changes described for the Base market. No value mismatches, no target mismatches, and no omitted or extra material actions were found. Confidence is high because both markets' calldata could be numerically verified against the prose's explicit reward table.

Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
Review the decoded actions ↗

04Actions

4 total
#0setBaseTrackingSupplySpeed(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setBaseTrackingSupplySpeed(address,uint64)
Arguments
{
  "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3",
  "1": "1747685185185"
}
Calldata
#1setBaseTrackingBorrowSpeed(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setBaseTrackingBorrowSpeed(address,uint64)
Arguments
{
  "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3",
  "1": "821759259259"
}
Calldata
#2deployAndUpgradeTo(address,address)chain 0x1
Target
0x1ec6…8779
Value
0 wei
Function
deployAndUpgradeTo(address,address)
Arguments
{
  "0": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3",
  "1": "0xc3d688B66703497DAA19211EEdff47f25384cdc3"
}
Calldata
#3sendMessage(address,bytes,uint32)chain 0x1
Target
0x866e…0afa
Value
0 wei
Function
sendMessage(address,bytes,uint32)
Arguments
{
  "0": "0x18281dfC4d00905DA1aaA6731414EABa843c468A",
  "1": "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",
  "2": "3000000"
}
Calldata

05Tally

Summed from votes

Voters0
VP participating0
Outcome (current)—
Current support—

06Voters

0 total

No votes recorded yet.

07Forum

AIForum synthesis by Kvorumclaude-haiku-4-5
sentiment · mixedthread · constructive

Arguments for

  • Reducing COMP rewards on mature USDC comets achieves significant protocol savings ($7.3M annually) while maintaining attractive incentive structures across markets.— Gauntlet
  • Implementing a 90% kink in the IR curve with higher borrow APR (9% at kink, >50% at 100% utilization) aligns with elevated USDC borrowing demand and prevents liquidity crunches.— Gauntlet
  • Incremental approach to rate adjustments respects governance efficiency and community preference for gradual changes rather than drastic modifications.— Gauntlet

Arguments against

  • Excluding Arbitrum USDC from reward reductions contradicts the DAO's goal of attracting liquidity to underserved markets, especially given Arbitrum's extremely low liquidity.— cmrn

Unresolved concerns

  • Whether the original 7% borrow APR target and 5.04% supply APR were appropriately calibrated before the subsequent increase to 9% borrow APR and 6.75% supply APR.— tempail
  • Why prioritizing IR curve adjustments and reward reductions to achieve gradual market maturation takes precedence over aggressive efforts to attract liquidity in underserved markets like Arbitrum.— cmrn
  • Uncertainty about whether elevated USDC borrowing demand driving the updated IR recommendations will persist or prove transient.— Gauntlet

Notable participants

  • GauntletProposer who submitted and updated USDC reward and IR curve recommendations based on market conditions.
  • cmrnCommunity member who raised substantive questions about reward reductions' impact on liquidity attraction in Arbitrum and requested clarification on priorities.
  • tempailCommunity participant who requested explanation of the original APR targets.
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provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
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