KVORUM
compoundSource: Compound governor bravo · #307

[Gauntlet] - IO and Risk Recommendations for BASE, Mainnet, and Arbitrum (2024-08-12)

executedAug 18, 2024, 06:44 PM UTCby7B0x7b3c…cc33

01Summary

AISummary by Kvorumclaude-haiku-4-5

Gauntlet recommends reducing COMP incentives on mainnet (WETH supply rewards from 70 to 35, USDC supply rewards from 151 to 70), increasing supply caps for staked ETH assets on Arbitrum and Base, and adjusting collateral/liquidation factors for several LRT assets across multiple chains to improve capital efficiency.

Type
parameter change

Key changes

  • Reduce WETH supply rewards on Mainnet from 70 to 35(high)
  • Reduce USDC supply rewards on Mainnet from 151 to 70(high)
  • Increase USDT Arbitrum wstETH supply cap from 5,000 to 10,000(medium)
  • Increase USDC Arbitrum wstETH supply cap from 1,500 to 5,000(medium)
  • Increase WETH BASE ezETH supply cap from 500 to 1,500(medium)
  • Increase WETH BASE ezETH collateral factor from 80% to 88% and liquidation factor from 85% to 91%, decrease liquidation penalty from 10% to 6%(medium)
  • Increase WETH ARB rsETH collateral factor from 80% to 88% and liquidation factor from 85% to 91%, decrease liquidation penalty from 10% to 4%(medium)
  • Increase WETH ARB weETH collateral factor from 85% to 90% and liquidation factor from 90% to 93%, decrease liquidation penalty from 5% to 4%(medium)

Notable concerns

  • Reduction of incentives may impact APY competitiveness on mainnet markets
  • Changes affect multiple chains and assets requiring coordinated implementation
  • Collateral and liquidation factor adjustments carry execution risk across different chains
Contracts0xA17581A9E3356d9A858b789D68B4d866e593aE940xc3d688B66703497DAA19211EEdff47f25384cdc30x316f9708bb98af7da9c68c1c3b5e79039cd336e30x1ec63b5883c3481134fd50d5daebc83ecd2e8779Arbitrum Comet contractsBase Comet contracts
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

345 words

[Gauntlet] - IO and Risk Recommendations for BASE, Mainnet, and Arbitrum (2024-08-12)

Summary

Gauntlet recommends the following incentive changes

CometCurrent Supply RewardsRecommended Supply RewardsCurrent Borrow RewardsRecommended Borrow Rewards
WETH703520No Change
USDC1517071No Change

Along with the above Gauntlet recommends the following supply cap changes:

  • Increase USDT Arbitrum wstETH Supply Cap from 5,000 to 10,000
  • Increase USDC Arbitrum wstETH Supply Cap from 1,500 to 5,000
  • Increase WETH BASE ezETH Supply Cap from 500 to 1,500
  • Increase WETH BASE ezETH Collateral Factor from 80% to 88%
  • Increase WETH BASE ezETH Liquidation Factor from 85% to 91%
  • Decrease WETH BASE ezETH Liquidation Penalty from 10% to 6%
  • Increase WETH ARB rsETH Collateral Factor from 80% to 88%
  • Increase WETH ARB rsETH Liquidation Factor from 85% to 91%
  • Decrease WETH ARB rsETH Liquidation Penalty from 10% to 4%
  • Increase WETH ARB weETH Collateral Factor from 85% to 90%
  • Increase WETH ARB weETH Liquidation Factor from 90% to 93%
  • Decrease WETH ARB weETH Liquidation Penalty from 5% to 4%

Motivation

  • Gauntlet is recommending reduction of incentives of Mainnet Comets to follwoing feedback from community and improve "net profitability" of Comets w/o negatively impacting APY competitivenes. Full proposal and forum discussions can be found here.
  • Gauntlet recommends increasing supply cap for 3 LRT/LST assets to improve capital efficiency. Full proposal and forum discussions can be found here.
  • Following the implementation of Exchange Rate Oracles, Gauntlet recommends adjusting the risk recommendations for the following LRTs to improve captial efficiency. Full proposal and forum discussions can be found here.

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

AIMismatch analysis by Kvorum

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

04Actions

6 total
#0setBaseTrackingSupplySpeed(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setBaseTrackingSupplySpeed(address,uint64)
Arguments
{
  "0": "0xA17581A9E3356d9A858b789D68B4d866e593aE94",
  "1": "405092592592"
}
Calldata
#1deployAndUpgradeTo(address,address)chain 0x1
Target
0x1ec6…8779
Value
0 wei
Function
deployAndUpgradeTo(address,address)
Arguments
{
  "0": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3",
  "1": "0xA17581A9E3356d9A858b789D68B4d866e593aE94"
}
Calldata
#2setBaseTrackingSupplySpeed(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setBaseTrackingSupplySpeed(address,uint64)
Arguments
{
  "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3",
  "1": "810185185185"
}
Calldata
#3deployAndUpgradeTo(address,address)chain 0x1
Target
0x1ec6…8779
Value
0 wei
Function
deployAndUpgradeTo(address,address)
Arguments
{
  "0": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3",
  "1": "0xc3d688B66703497DAA19211EEdff47f25384cdc3"
}
Calldata
#4createRetryableTicket(address,uint256,uint256,address,address,uint256,uint256,bytes)chain 0x1
Target
0x4dbd…ab3f
Value
7213665000000000 wei
Function
createRetryableTicket(address,uint256,uint256,address,address,uint256,uint256,bytes)
Arguments
{
  "0": "0x42480C37B249e33aABaf4c22B20235656bd38068",
  "1": "0",
  "2": "5118410000000000",
  "3": "0x3fB4d38ea7EC20D91917c09591490Eeda38Cf88A",
  "4": "0x3fB4d38ea7EC20D91917c09591490Eeda38Cf88A",
  "5": "4190510",
  "6": "500000000",
  "7": 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}
Calldata
#5sendMessage(address,bytes,uint32)chain 0x1
Target
0x866e…0afa
Value
0 wei
Function
sendMessage(address,bytes,uint32)
Arguments
{
  "0": "0x18281dfC4d00905DA1aaA6731414EABa843c468A",
  "1": "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",
  "2": "3000000"
}
Calldata

05Tally

Summed from votes

Voters30
VP participating615.5K
Outcome (current)For
Current support100%

06Voters

30 total
Filter:
VoterChoice% of totalRationale
680x683a…6c02For90.1K14.63%—2y ago
220x2210…d02eFor89.6K14.56%—2y ago
B90xb933…8dd1For80K13.00%—2y ago
070x0703…961bFor70K11.37%—2y ago
B40xb49f…7948For50K8.12%—2y ago
130x13bd…8548For50K8.12%—2y ago
7B0x7b3c…cc33For50K8.12%—2y ago
DC0xdc1f…e432For50K8.12%—2y ago
3F0x3fb1…4c8aFor45.6K7.40%—2y ago
660x66cd…65f9For35.6K5.79%—2y ago
B30xb356…c826For4.6K0.75%—2y ago
E40xe459…e666For5.20.00%—2y ago
920x9219…38e1For1.50.00%—2y ago
500x50d2…5318For1.30.00%—2y ago
340x3496…126bFor1.30.00%—2y ago
050x0579…ca09For10.00%—2y ago
170x1729…b879For10.00%—2y ago
D20xd260…b1b6For0.50.00%—2y ago
2F0x2f2f…f78aFor0.50.00%—2y ago
D80xd8de…ae41For0.10.00%—2y ago
880x88f6…0ec0For00.00%—2y ago
CE0xce1d…a1e9For00.00%—2y ago
4A0x4a8d…4046For00.00%—2y ago
1C0x1cf6…964fFor00.00%—2y ago
B50xb5c1…6e58For00.00%—2y ago
920x9206…2babAgainst00.00%—2y ago
8A0x8a34…e313For00.00%—2y ago
340x34ac…3ce4For00.00%—2y ago
F40xf4ac…5b02Abstain00.00%—2y ago
1E0x1e88…a8a6Abstain00.00%—2y ago
Showing 30

07Forum

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

Arguments for

  • Exchange rate oracles eliminate volatility-based pricing, allowing lower liquidation penalties and higher collateral factors while maintaining safety through data-driven metrics.— Gauntlet
  • Liquidation penalties based on maximum negative deviation between market and exchange rates (2x AMD) provide adequate buffer while incentivizing liquidators sufficiently.— Gauntlet
  • Using median withdrawal ratio as a liquidity stress indicator allows differentiated liquidation factors that reflect actual protocol redemption pressure.— Gauntlet
  • The proposed changes increase capital efficiency for LRT collateral without compromising protocol safety through rigorous quantitative analysis.— Gauntlet

Arguments against

None surfaced.

Notable participants

  • GauntletProposer presenting risk parameter recommendations for LRTs with quantitative methodology and exchange rate oracle implementation.
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Open the thread ↗