[Gauntlet] Ethereum v3 USDC Comet Recommendations (2024-04-18)
01Summary
Gauntlet recommends risk parameter adjustments for UNI in the Ethereum v3 USDC Comet to mitigate risk and increase capital efficiency: reducing supply cap from 8M to 2.6M UNI, decreasing collateral factor from 75% to 73%, decreasing liquidation factor from 81% to 79%, and increasing liquidation penalty from 15% to 17%.
- Type
- parameter change
Key changes
- UNI Supply Cap decreased from 8,000,000 to 2,600,000(high)
- UNI Collateral Factor decreased from 75% to 73%(high)
- UNI Liquidation Factor decreased from 81% to 79%(high)
- UNI Liquidation Penalty increased from 15% to 17%(high)
Notable concerns
- Significant reduction in UNI supply cap may limit UNI collateral availability
- Multiple parameter reductions indicate heightened risk concerns around UNI collateral
Generated by Kvorum
02Description
[Gauntlet] Ethereum v3 USDC Comet Recommendations (2024-04-18)
Simple Summary
Gauntlet recommends the following risk parameter updates for the Ethereum v3 USDC comet
- Decrease UNI Supply Cap from 8,000,000 to 2,600,000
- Decrease UNI Liquidation Factor from 81% to 79%
- Decrease UNI Collateral Factor from 75% to 73%
- Increase UNI Liquidation Penalty from 15% to 17%
Motivation
Gauntlet recommends parameter updates for the Collateral Factor, Liquidation Factor, Supply Cap, and Liquidation Penalty across the Comet to mitigate risk and increase capital efficiency.
Full proposal and forum discussion
Specification
This proposal updates the relevant parameters in the Ethereum v3 USDC Comet
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 mapped each description bullet to the corresponding Comet configurator call using standard Compound v3 naming conventions: 'Collateral Factor' = borrowCollateralFactor (action 0, new value 73% matches), 'Liquidation Factor' = liquidateCollateralFactor (action 1, new value 79% matches), and 'Liquidation Penalty' = 1 - liquidationFactor (action 2 sets liquidationFactor to 83%, giving a penalty of 17%, matching the description's target of 17%). The Supply Cap update (action 3) exactly matches the stated new cap of 2,600,000 UNI. Action 4 (deployAndUpgradeTo) is the routine boilerplate step used to push the updated asset configuration live via the Comet proxy - this is standard for all Compound v3 parameter-change proposals and its omission from the prose is not a meaningful discrepancy. All numeric targets in the calldata align with the 'to' values stated in the description once unit and naming conventions are normalized, so no value, target, or omission issues rise to the level of a discrepancy worth flagging to voters.'
Generated by Kvorum
04Actions
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- updateAssetBorrowCollateralFactor(address,address,uint64)
- Arguments
{ "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3", "1": "0x1f9840a85d5aF5bf1D1762F925BDADdC4201F984", "2": "730000000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- updateAssetLiquidateCollateralFactor(address,address,uint64)
- Arguments
{ "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3", "1": "0x1f9840a85d5aF5bf1D1762F925BDADdC4201F984", "2": "790000000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- updateAssetLiquidationFactor(address,address,uint64)
- Arguments
{ "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3", "1": "0x1f9840a85d5aF5bf1D1762F925BDADdC4201F984", "2": "830000000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- updateAssetSupplyCap(address,address,uint128)
- Arguments
{ "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3", "1": "0x1f9840a85d5aF5bf1D1762F925BDADdC4201F984", "2": "2600000000000000000000000" }- Calldata
- Target
- 0x1ec6…8779
- Value
- 0 wei
- Function
- deployAndUpgradeTo(address,address)
- Arguments
{ "0": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3", "1": "0xc3d688B66703497DAA19211EEdff47f25384cdc3" }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| B90xb933…8dd1 | For | 54.1K | 12.52% | — | 3y ago |
| 680x683a…6c02 | For | 50.1K | 11.58% | — | 3y ago |
| 7A0x7ae1…e585 | For | 50K | 11.57% | — | 3y ago |
| B40xb49f…7948 | For | 50K | 11.57% | — | 3y ago |
| 070x0703…961b | For | 50K | 11.57% | — | 3y ago |
| 130x13bd…8548 | For | 50K | 11.57% | — | 3y ago |
| 7B0x7b3c…cc33 | For | 50K | 11.57% | — | 3y ago |
| DC0xdc1f…e432 | For | 50K | 11.57% | — | 3y ago |
| 3F0x3fb1…4c8a | For | 25.6K | 5.91% | — | 3y ago |
| B30xb356…c826 | For | 1.8K | 0.41% | — | 3y ago |
| 660x66cd…65f9 | For | 448.9 | 0.10% | — | 3y ago |
| AB0xab61…ec5a | For | 171 | 0.04% | — | 3y ago |
| 6F0x6f9b…8a1d | Against | 42.8 | 0.01% | — | 3y ago |
| E40xe459…e666 | For | 3.2 | 0.00% | — | 3y ago |
| 920x9219…38e1 | For | 1.5 | 0.00% | — | 3y ago |
| 8B0x8bb9…ccc2 | For | 1.1 | 0.00% | — | 3y ago |
| 630x63f6…80c1 | For | 1.1 | 0.00% | — | 3y ago |
| C30xc34a…68c2 | For | 0.7 | 0.00% | — | 3y ago |
| D20xd260…b1b6 | For | 0.5 | 0.00% | — | 3y ago |
| 2F0x2f2f…f78a | For | 0.5 | 0.00% | — | 3y ago |
| 140x1402…d132 | For | 0.1 | 0.00% | — | 3y ago |
| D90xd953…661e | For | 0.1 | 0.00% | — | 3y ago |
| FF0xff3c…97ba | Against | 0 | 0.00% | — | 3y ago |
| C90xc9f3…af20 | For | 0 | 0.00% | — | 3y ago |
| D50xd5dc…d23e | For | 0 | 0.00% | — | 3y ago |
| 430x4315…7279 | For | 0 | 0.00% | — | 3y ago |
| 7A0x7ae9…0c0b | For | 0 | 0.00% | — | 3y ago |
| 450x45ad…782c | For | 0 | 0.00% | — | 3y ago |
| 740x7494…2a72 | For | 0 | 0.00% | — | 3y ago |
07Forum
- [Gauntlet] - UNI USDC v3 COMET Recommendations (2024-04-18) ↗discourse · high confidence
Arguments for
- UNI volatility has surged significantly with 7-day Garman-Klass volatility reaching peak levels over the past month, requiring more cautious risk management parameters.— Gauntlet
- On-chain liquidity for UNI has deteriorated substantially, with 25% depth declining from $27.7M to $5.1M, necessitating reduced supply cap from $57.41M to $20M.— Gauntlet
- Supply cap usage has dropped from 95% in February to 13% currently, indicating the $20M recommended cap aligns with actual market demand.— Gauntlet
- Reducing liquidation factor by 2% and collateral factor by 2% will not currently cause new liquidatable positions based on analysis of positions with borrows exceeding $5,000 and health factors below 1.17.— Gauntlet
- Increasing liquidation penalty from 15% to 17% is a proactive measure to offset slippage challenges as on-chain liquidity declines, ensuring future liquidations remain profitable.— Gauntlet
Arguments against
None surfaced.
Notable participants
- GauntletProposer and risk analyst presenting liquidity tracking data and parameter recommendations for Ethereum v3 USDC Comet.
Generated by Kvorum
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