[Gauntlet] Risk and IO Parameter Recommendations - (2024-08-06)
01Summary
Gauntlet recommends parameter adjustments across Compound v3 markets: increase ezETH supply cap on Ethereum from 8,000 to 12,000 WETH, increase weETH supply cap on Arbitrum from 6,000 to 12,000 WETH, increase USDT reserve factor from 7.5% to 15%, and eliminate DAI daily supply and borrow comp rewards (reduce from 25 to 0). These changes aim to incentivize growth in v3 markets and encourage migration from v2.
- Type
- parameter change
Key changes
- Increase WETH Ethereum ezETH Supply Cap from 8,000 to 12,000(medium)
- Increase WETH Arbitrum weETH Supply Cap from 6,000 to 12,000(medium)
- Increase USDT Reserve Factor from 7.5% to 15%(medium)
- Reduce DAI Daily Supply Comp Reward from 25 to 0(medium)
- Reduce DAI Daily Borrow Comp Reward from 25 to 0(medium)
Notable concerns
- Supply cap increases and reward reductions are designed to shift liquidity and users from v2 to v3 markets
Generated by Kvorum
02Description
[Gauntlet] Risk and IO Parameter Recommendations - (2024-08-06)
Summary
Gauntlet recommends the following parameter adjustments:
- Increase WETH Ethereum ezETH Supply Cap from 8,000 to 12,000
- Increase WETH Arbitrum weETH Supply Cap from 6,000 to 12,000
- Increase USDT Reserve Factor from 7.5% to 15%
- Reduce DAI Daily Supply Comp Reward from 25 to 0.
- Reduce DAI Daily Borrow Comp Reward from 25 to 0.
Motivation
Gauntlet recommends updating the supply caps to incentivize further growth within respective Comets. The Reserve Factor and Comp reward adjustments will motivate v2 users to migrate to v3 markets. For more details, see the full forum posts below: Compound v2 Deprecation Phase 13 (08/01/2024) [Gauntlet] Risk Recommendations (2024-08-06)
Specification
The proposal updates the parameters 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
A calldata-vs-description analysis is not generated yet. Review the decoded actions →
04Actions
- Target
- 0xf650…dcc9
- Value
- 0 wei
- Function
- _setReserveFactor(uint256)
- Arguments
{ "0": "150000000000000000" }- Calldata
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCompSpeeds(address[],uint256[],uint256[])
- Arguments
{ "0": [ "0x5d3a536E4D6DbD6114cc1Ead35777bAB948E3643" ], "1": [ "0" ], "2": [ "0" ] }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- updateAssetSupplyCap(address,address,uint128)
- Arguments
{ "0": "0xA17581A9E3356d9A858b789D68B4d866e593aE94", "1": "0xbf5495Efe5DB9ce00f80364C8B423567e58d2110", "2": "12000000000000000000000" }- Calldata
- Target
- 0x1ec6…8779
- Value
- 0 wei
- Function
- deployAndUpgradeTo(address,address)
- Arguments
{ "0": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3", "1": "0xA17581A9E3356d9A858b789D68B4d866e593aE94" }- Calldata
- Target
- 0x4dbd…ab3f
- Value
- 1975191500000000 wei
- Function
- createRetryableTicket(address,uint256,uint256,address,address,uint256,uint256,bytes)
- Arguments
{ "0": "0x42480C37B249e33aABaf4c22B20235656bd38068", "1": "0", "2": "1393610000000000", "3": "0x3fB4d38ea7EC20D91917c09591490Eeda38Cf88A", "4": "0x3fB4d38ea7EC20D91917c09591490Eeda38Cf88A", "5": "1163163", "6": "500000000", "7": "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" }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
- [Gauntlet] Risk Recommendations (2024-08-06) ↗discourse · high confidence
- Compound v2 Deprecation Phase 13 (08/01/2024) ↗discourse · high confidence
Arguments for
- Exchange rate price feeds for LRTs enable more capital-efficient parameter recommendations while shielding assets from market fluctuations.— Gauntlet
- Top ezETH suppliers on Ethereum can be safely liquidated with acceptable slippage (1.26% for $7.5M), supporting higher supply caps.— Gauntlet
- Top weETH suppliers on Arbitrum can be safely liquidated with acceptable slippage (1.41% for $3.1M), supporting higher supply caps.— Gauntlet
- Compound's 4.1% weETH market share on Arbitrum is minor compared to Aave's 64%, indicating manageable systemic exposure.— Gauntlet
Arguments against
None surfaced.
Unresolved concerns
- Significant concentration of ezETH liquidity in a single Balancer pool ($27M of $41.45M total) and potential tail-end risks from relying on exchange rate price feeds were flagged but not fully addressed.— Gauntlet
Notable participants
- GauntletRisk analysis firm proposing ezETH and weETH supply cap increases with detailed liquidity and concentration analysis.
Generated by Kvorum
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