KVORUM
compoundSource: Compound governor bravo · #272

[Gauntlet] Polygon USDC.e and Scroll USDC - Risk and Incentive Recommendations

executedJul 6, 2024, 02:35 PM UTCby680x683a…6c02

01Summary

AISummary by Kvorumclaude-haiku-4-5

Gauntlet proposes risk parameter adjustments for Polygon USDC.e and Scroll USDC comets. For Polygon USDC.e: decrease supply caps for WBTC, WETH, WMATIC, and MaticX, and reduce COMP incentives. For Scroll USDC: increase wstETH and WETH supply caps and adjust borrow/supply interest rate slopes to encourage borrowing while reducing reserve factor costs.

Type
parameter change

Key changes

  • Polygon USDC.e: Decrease WBTC Supply Cap from 1500 to 750(high)
  • Polygon USDC.e: Decrease WETH Supply Cap from 20000 to 2500(high)
  • Polygon USDC.e: Decrease WMATIC Supply Cap from 20M to 8M(high)
  • Polygon USDC.e: Decrease MaticX Supply Cap from 6M to 2M(high)
  • Polygon USDC.e: Decrease Daily COMP Supply Rewards from 16 to 8(medium)
  • Polygon USDC.e: Decrease Daily COMP Borrow Rewards from 7 to 3(medium)
  • Scroll USDC: Increase wstETH Supply Cap from 50 to 250(medium)
  • Scroll USDC: Increase WETH Supply Cap from 300 to 2000(medium)

Notable concerns

  • Polygon USDC.e supply cap reductions reflect risk management for underutilized positions
  • Incentive reductions on Polygon USDC.e account for higher per-USDC.e costs within the protocol
  • Scroll parameter adjustments aim to improve capital efficiency and encourage increased borrowing
Contracts0xf25212e676d1f7f89cd72ffee66158f5412464450x1bfd67037b42cf73acf2047067bd4f2c47d9bfd600x7ceb23fd6bc0add59e62ac25578270cff1b9f6190xd500b1d8e8ef31e21c99d1db9a6444d3adf12700xb2f97c1bd3bf02f5e74d13f02e3e26f93d77ce440xf610a9dfb7c89644979b4a0f27063e9e7d7cda320x530000000000000000000000000000000000004
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
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02Description

353 words

[Gauntlet] Polygon USDC.e and Scroll USDC - Risk and Incentive Recommendations

Simple Summary

Gauntlet recommends the following risk parameter updates for the Polygon USDC.e comet:

  • Decrease WBTC Supply Cap from 1500 WBTC to 750 WBTC
  • Decrease WETH Supply Cap from 20000 WETH to 2500 WETH
  • Decrease WMATIC Supply Cap from 20M to 8M WMATIC
  • Decrease MaticX Supply Cap from 6M to 2M MaticX
  • Decrease Daily Comp Supply Rewards from 16 COMP to 8
  • Decrease Daily Comp Borrow Rewards from 7 COMP to 3

Gauntlet recommends the following risk parameter updates for the Scroll v3 USDC comet:

  • Increase wstETH Supply Cap from 50 to 250
  • Increase WETH Supply Cap from 300 to 2000

Gauntlet recommends adjusting the Scroll USDC IR curve:

ParameterCurrentRecommended
Annual Borrow Interest Rate Base.015.015
Annual Borrow Interest Rate Slope Low0.0530.05
Borrow Kink0.850.85
Annual Borrow Interest Rate Slope High1.801.80
Annual Supply Interest Rate Base00
Annual Supply Interest Rate Slope Low0.0480.036
Supply Kink0.850.85
Annual Supply Interest Rate Slope High1.61.6

Motivation

Gauntlet recommends adjusting Polygon USDC.e Comet's supply caps to risk off under utilized caps and reducing incentives to account for the higher costs per USDC.e within the protocol. Full proposal and forum discussion

Gauntlet recommends adjusting the Scroll USDC Comet's supply cap parameters to increase capital efficiency and adjust IR curves to encourage increased borrowing while also decreasing the negative reserve factor. Full proposal and forum discussion

Specification

The proposal updates the Supply Cap, borrow/supply per year interest rate low slope, Base Tracking Borrow Speed,and Base Tracking Supply Speed 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 Kvorum

A calldata-vs-description analysis is not generated yet. Review the decoded actions →

04Actions

2 total
#0sendMessageToChild(address,bytes)chain 0x1
Target
0xfe5e…89a2
Value
0 wei
Function
sendMessageToChild(address,bytes)
Arguments
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Calldata
#1sendMessage(address,uint256,bytes,uint256)chain 0x1
Target
0x6774…b367
Value
100000000000000000 wei
Function
sendMessage(address,uint256,bytes,uint256)
Arguments
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  "3": "3000000"
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Calldata

05Tally

Summed from votes

Voters48
VP participating475.7K
Outcome (current)For
Current support100%

06Voters

48 total

No votes recorded yet.

07Forum

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

Arguments for

  • Supply caps are under-utilized and trending downward, requiring reduction to maintain healthy utilization ratios.— Gauntlet
  • Incentive costs have doubled for borrows and increased 75% for supplies relative to USDC.e balance, justifying reward reductions.— Gauntlet
  • Reduced rewards will still maintain attractive Net Supply APR of 7.7% and Net Borrow APR of 8.5% at kink.— Gauntlet
  • The protocol achieves daily net profit at 78% utilization with proposed parameters, demonstrating viability.— Gauntlet
  • Proposed cap reductions will not push utilization above the 75% safety threshold.— Gauntlet

Arguments against

None surfaced.

Notable participants

  • GauntletRisk analysis firm proposing the parameter adjustments with supporting data.
  • jbass-ozConfirmed OpenZeppelin's technical validation of the proposal execution.
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
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