[Gauntlet] Ethereum v3 WETH - Interest Rate Curve Recommendations (04/08/2024)
01Summary
Gauntlet proposes adjusting the interest rate curve for Compound III WETH on Ethereum to increase utilization and reserve growth by modifying borrow/supply rate slopes, kinks, and the borrow base rate.
- Type
- parameter change
Key changes
- Borrow interest rate base increased from 0.005 to 0.01(medium)
- Borrow interest rate slope low decreased from 0.030 to 0.014(medium)
- Borrow kink decreased from 0.9 to 0.85(medium)
- Borrow interest rate slope high decreased from 1.0 to 0.53(high)
- Supply interest rate slope low decreased from 0.023 to 0.0185(medium)
- Supply kink decreased from 0.9 to 0.85(medium)
- Supply interest rate slope high decreased from 1.0 to 0.45(high)
Notable concerns
- The proposal increases the base borrowing rate which could increase costs for borrowers
- Multiple simultaneous changes to interest rate parameters could have cascading effects on market dynamics
Generated by Kvorum
02Description
[Gauntlet] Ethereum v3 WETH - Interest Rate Curve Recommendations (04/08/2024)
Simple Summary
A proposal from Gauntlet to adjust IR Curve for Compound III WETH on Mainnet:
| Parameter | Current | Recommended |
|---|---|---|
| Annual Borrow Interest Rate Base | 0.005 | 0.01 |
| Annual Borrow Interest Rate Slope Low | 0.030 | 0.014 |
| Borrow Kink | 0.9 | 0.85 |
| Annual Borrow Interest Rate Slope High | 1.0 | 0.53 |
| Annual Supply Interest Rate Base | 0 | 0 |
| Annual Supply Interest Rate Slope Low | 0.023 | 0.0185 |
| Supply Kink | 0.9 | 0.85 |
| Annual Supply Interest Rate Slope High | 1.0 | 0.45 |
Motivation
Gauntlet recommends adjusting the Interest Rate Curve in the Ethereum v3 WETH comet to increase utilization and reserve growth. Full proposal and forum discussion
Specification
The proposal updates the the supply/borrow per year interest rate high slope, and the borrow/supply per year interest rate low slope, borrow per year interest rate base and borrow/supply kink 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
I compared each row of the proposal's parameter table against the corresponding Configurator setter call in the calldata, converting the prose's decimal fractions to 18-decimal fixed point for comparison. All eight numeric changes (borrow base, borrow slope low, borrow slope high, borrow kink, supply slope low, supply slope high, supply kink) match exactly between the description and the decoded calldata values. The supply base rate is stated to remain unchanged at 0, and indeed no setSupplyPerYearInterestRateBase call appears in the calldata, consistent with no change being needed. The final action (deployAndUpgradeTo) is the standard mechanism used by Compound III governance proposals to apply Configurator changes to the live Comet proxy — this is routine boilerplate for this contract type and is implicitly covered by the description's statement that changes are made 'by using the respective methods on the Configurator.' No value, target, or omission discrepancies were found; the proposal description accurately and completely reflects the on-chain actions.
Generated by Kvorum
04Actions
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setBorrowKink(address,uint64)
- Arguments
{ "0": "0xA17581A9E3356d9A858b789D68B4d866e593aE94", "1": "850000000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setBorrowPerYearInterestRateBase(address,uint64)
- Arguments
{ "0": "0xA17581A9E3356d9A858b789D68B4d866e593aE94", "1": "10000000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setBorrowPerYearInterestRateSlopeLow(address,uint64)
- Arguments
{ "0": "0xA17581A9E3356d9A858b789D68B4d866e593aE94", "1": "14000000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setBorrowPerYearInterestRateSlopeHigh(address,uint64)
- Arguments
{ "0": "0xA17581A9E3356d9A858b789D68B4d866e593aE94", "1": "530000000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setSupplyKink(address,uint64)
- Arguments
{ "0": "0xA17581A9E3356d9A858b789D68B4d866e593aE94", "1": "850000000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setSupplyPerYearInterestRateSlopeLow(address,uint64)
- Arguments
{ "0": "0xA17581A9E3356d9A858b789D68B4d866e593aE94", "1": "18500000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setSupplyPerYearInterestRateSlopeHigh(address,uint64)
- Arguments
{ "0": "0xA17581A9E3356d9A858b789D68B4d866e593aE94", "1": "450000000000000000" }- Calldata
- Target
- 0x1ec6…8779
- Value
- 0 wei
- Function
- deployAndUpgradeTo(address,address)
- Arguments
{ "0": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3", "1": "0xA17581A9E3356d9A858b789D68B4d866e593aE94" }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
- [Gauntlet] Ethereum v3 WETH - Interest Rate Curve Recommendations (04/03/24) ↗discourse · high confidence
Arguments for
- The recommended IR curve adjustment promotes efficient WETH utilization and reserve growth by setting lower rates that reflect observed low demand throughout 2024.— Gauntlet
Arguments against
None surfaced.
Notable participants
- GauntletProposer who submitted the IR curve adjustment recommendation for Ethereum v3 WETH.
Generated by Kvorum
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