[Gauntlet] Stablecoin IR Recommendations - Mainnet
01Summary
Gauntlet proposes updating interest rate curve parameters for Ethereum USDC and USDT Comets to incentivize growth and higher utilization. The changes modify borrow and supply rate bases, slopes, and kinks across both stablecoins.
- Type
- parameter change
Key changes
- Update Ethereum USDC Comet borrow interest rate base to 0.015 (1.5%)(medium)
- Update Ethereum USDC Comet borrow interest rate slope low to 0.0333 (3.33%)(medium)
- Update Ethereum USDC Comet supply interest rate slope low to 0.039 (3.9%)(medium)
- Update Ethereum USDT Comet borrow interest rate base to 0.015 (1.5%)(medium)
- Update Ethereum USDT Comet borrow interest rate slope low to 0.0333 (3.33%)(medium)
- Update Ethereum USDT Comet supply interest rate slope low to 0.039 (3.9%)(medium)
- Deploy and upgrade Configurator implementations for both USDC and USDT Comets(high)
Generated by Kvorum
02Description
[Gauntlet] Stablecoin IR Recommendations - Mainnet
Summary
Gauntlet recommends updating the interest rate curves for Stablecoin Comets.
| Parameter | Recommended Value |
|---|---|
| Annual Borrow Interest Rate Base | .015 |
| Annual Borrow Interest Rate Slope Low | .0333 |
| Borrow Kink | .9 |
| Annual Borrow Interest Rate Slope High | 4.0 |
| Annual Supply Interest Rate Base | 0 |
| Annual Supply Interest Rate Slope Low | .039 |
| Supply Kink | .9 |
| Annual Supply Interest Rate Slope High | 3.6 |
This recommendation only includes the following Comets
- Ethereum USDC
- Ethereum USDT
Motivation
Gauntlet recommends updating the interest rate curve parameters across all stablecoin comets to incentivize further growth and higher utilization. See the the full proposal and forum discussion for more details.
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
The proposal describes updating 8 interest-rate-curve parameters for two Comets (USDC and USDT). The calldata, however, only contains setter calls for 3 of those 8 parameters per Comet (Borrow Base, Borrow Slope Low, Supply Slope Low), plus a deployAndUpgradeTo call per Comet that finalizes the configuration change (a standard, expected step for Compound III Comet upgrades and not something that needs separate mention). The values that are set match the described figures closely, with one small exception: the Borrow Slope Low is described as .0333 but is actually set to .033 (33e15), a minor rounding discrepancy. The remaining five parameters (Borrow Kink, Borrow Slope High, Supply Base, Supply Kink, Supply Slope High) are not touched by any calldata action; this is most plausibly because their current on-chain values already match the recommended values, so no setter call is needed — a normal pattern for these types of proposals — but the description doesn't state this explicitly, so a careful reviewer should be aware that not all table rows correspond to an executed action. I could not independently verify that the two target addresses (0xc3d688... and 0x3Afdc9...) actually correspond to the USDC and USDT Comets named in the description, which limits confidence to medium. Overall, the execution is faithful to the intent and magnitude of the description with only a minor value rounding difference and an omission of clarification about parameters left unchanged, so this is a minor discrepancy rather than a material or severe one.
Discrepancies
- lowvalue mismatch
Description states the Annual Borrow Interest Rate Slope Low should be set to .0333 (3.33%), but the calldata sets it to 33000000000000000 (3.3%) for both Comets. This is a small but real numeric discrepancy.
“Annual Borrow Interest Rate Slope Low | .0333”
- mediumextra in description
The description's recommendation table lists new values for Borrow Kink, Annual Borrow Interest Rate Slope High, Annual Supply Interest Rate Base, Supply Kink, and Annual Supply Interest Rate Slope High, but no corresponding setter calls for these parameters appear in the decoded calldata for either Comet. This likely means these parameters are already at the recommended values and require no on-chain change, but the description does not clarify this, potentially implying a broader set of changes than what will actually execute.
“Recommended Value”
Generated by Kvorum
04Actions
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setBorrowPerYearInterestRateBase(address,uint64)
- Arguments
{ "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3", "1": "15000000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setBorrowPerYearInterestRateSlopeLow(address,uint64)
- Arguments
{ "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3", "1": "33000000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setSupplyPerYearInterestRateSlopeLow(address,uint64)
- Arguments
{ "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3", "1": "39000000000000000" }- Calldata
- Target
- 0x1ec6…8779
- Value
- 0 wei
- Function
- deployAndUpgradeTo(address,address)
- Arguments
{ "0": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3", "1": "0xc3d688B66703497DAA19211EEdff47f25384cdc3" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setBorrowPerYearInterestRateBase(address,uint64)
- Arguments
{ "0": "0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840", "1": "15000000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setBorrowPerYearInterestRateSlopeLow(address,uint64)
- Arguments
{ "0": "0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840", "1": "33000000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setSupplyPerYearInterestRateSlopeLow(address,uint64)
- Arguments
{ "0": "0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840", "1": "39000000000000000" }- Calldata
- Target
- 0x1ec6…8779
- Value
- 0 wei
- Function
- deployAndUpgradeTo(address,address)
- Arguments
{ "0": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3", "1": "0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840" }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
- [Gauntlet] Interest Rate Curve Recommendations in Stablecoin Comets (8/22/24) ↗discourse · high confidence
Arguments for
- Lowering borrow and supply APR at the kink to 4.5% and 3.51% respectively will incentivize higher utilization in stablecoin markets currently operating below the kink.— Gauntlet
Arguments against
None surfaced.
Notable participants
- GauntletProposal author providing interest rate curve recommendations and analysis for stablecoin markets.
Generated by Kvorum
08Similar proposals
- compoundexecuted[Gauntlet] Stablecoin IR recommendations96%
- compoundexecuted[Gauntlet] Stablecoin IR Recommendations95%
- compoundexecuted[Gauntlet] - Stablecoin IR curve recommendations (4/21/25)93%
- compoundexecuted[Gauntlet] - IR Curve and Incentive Recommendations for Stablecoin and WETH Comets - Part 391%
- compoundexecuted[Gauntlet] - IR Curve and Incentive Recommendations for Stablecoin and WETH Comets - Part 191%
- compoundexecuted[Gauntlet] - Interest Rate Curve Recommendations (03/25)89%
- compoundexecuted[Gauntlet] USDC Comets - Interest Rate Curve & Reward Recommendations (3/11/24)88%
- compoundexecuted[Gauntlet] - IR Curve and Incentive Recommendations for Stablecoin and WETH Comets - Part 887%
- compounddefeated[Gauntlet] 2023-12-24: Ethereum v3 USDC, Polygon v3 USDC.e - Interest Rate Curve Recommendations87%
- compoundexecuted[Gauntlet] - WETH Comet Recommendations (2024-09-27)86%