Simple Summary
01Summary
Gauntlet proposes adjusting the interest rate curve and COMP incentives for Compound III WETH on BASE to improve capital efficiency given low utilization. Changes include reducing daily COMP supply rewards from 20 to 15 tokens and lowering several interest rate slope parameters.
- Type
- parameter change
Key changes
- Reduce daily COMP supply rewards for WETH market on BASE from 20 to 15 tokens(medium)
- Lower Annual Supply Interest Rate Slope Low from 0.025 to 0.015(medium)
- Lower Annual Supply Interest Rate Slope High from 1 to 0.9(medium)
- Lower Annual Borrow Interest Rate Slope Low from 0.035 to 0.0155(medium)
Notable concerns
- Proposal approved terms of service from Gauntlet available at gauntlet.network/tos
Generated by Kvorum
02Description
Simple Summary
A proposal from Gauntlet to adjust IR Curve and Incentives to Compound III WETH (BASE):
| Markets | Daily COMP Supply Rewards (Tokens) | Recommended Daily COMP Supply Rewards (Tokens) |
|---|---|---|
| Compound III WETH (BASE) | 20 | 15 |
| Parameter | Current Value | Recommended Value |
|---|---|---|
| Annual Supply Interest Rate Base | 0 | 0 |
| Annual Supply Interest Rate Slope Low | .025 | .015 |
| Supply Kink | .9 | .9 |
| Annual Supply Interest Rate Slope High | 1 | .9 |
| Annual Borrow Interest Rate Base | .005 | .005 |
| Annual Borrow Interest Rate Slope Low | .035 | .0155 |
| Borrow Kink | .9 | .9 |
| Annual Borrow Interest Rate Slope High | 1 | 1 |
Motivation
Given the low utilization of the WETH Comet on BASE, Gauntlet proposes updating the IR curves and incentives to increase capital efficiency. Full proposal and forum discussion
Specification
The proposal updates the base tracking supply speeds, the supply per year interest rate high slope, and the borrow/supply per year interest rate low slope 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
The proposal is a single L1->L2 bridge message that, once decoded, contains exactly the four Configurator setter calls described in the Specification section (base tracking supply speed, supply slope high, borrow slope low, supply slope low) followed by the standard deployAndUpgradeTo call that Compound III governance always uses to push configuration changes live. This matches the parameter table's four changed rows (COMP rewards, Supply Slope Low, Supply Slope High, Borrow Slope Low) — the unchanged rows (Kinks, Interest Rate Base, Borrow Slope High) correctly have no corresponding setter calls, which is consistent rather than an omission since those values are unchanged. The deployAndUpgradeTo call is routine boilerplate needed to activate any Configurator change and is fair to omit from the prose. No extra targets, no unexpected transfers, and no role/ownership changes appear in the calldata. While the exact encoded uint64 rate values were not independently reverse-engineered against Comet's internal scaling factors, the structure, function set, and target (Compound III WETH Comet on BASE via its Configurator) fully align with the stated specification, giving high confidence of consistency.
Generated by Kvorum
04Actions
- Target
- 0x866e…0afa
- Value
- 0 wei
- Function
- sendMessage(address,bytes,uint32)
- Arguments
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05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
- [Gauntlet] Base V3 WETH Comets - Interest Rate Curve & Reward Recommendations (3/18/24) ↗discourse · high confidence
Arguments for
- Low utilization (40%) and negative reserve growth on V3 WETH Base justify reducing supply rewards and adjusting the IR curve to improve capital efficiency.— Gauntlet
Arguments against
None surfaced.
Notable participants
- GauntletProposal author and risk management contributor recommending supply reward reduction and IR curve adjustments for Base V3 WETH.
Generated by Kvorum
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