KVORUM
compoundSource: Compound governor bravo · #344

Compound v3 Base USDbC Collateral Factor Reduction & Interest Rate Recommendations (September 2024)

executedOct 13, 2024, 11:19 AM UTCby4D0x4d80…ef4b

01Summary

AISummary by Kvorumclaude-haiku-4-5

Gauntlet recommends reducing collateral factors and supply caps for WETH and cbETH on Compound v3 Base USDbC, and setting interest rate curve parameters. This proposal aims to proceed with Compound v3 Base USDbC deprecation by making the market less attractive for new deposits and borrowing.

Type
parameter change

Key changes

  • Decrease WETH Liquidation Collateral Factor from 84% to 74%(high)
  • Decrease cbETH Liquidation Collateral Factor from 80% to 70%(high)
  • Decrease WETH Borrow Collateral Factor from 79% to 69%(high)
  • Decrease cbETH Borrow Collateral Factor from 75% to 65%(high)
  • Decrease WETH Supply Cap from 11,000 to 1,100(high)
  • Decrease cbETH Supply Cap from 7,500 to 350(high)
  • Set Base USDbC interest rate parameters including supply and borrow curves with annual rates and kinks(medium)

Notable concerns

  • Significant reductions in collateral factors and supply caps suggest protocol deprecation, which may force liquidations or force users to migrate
  • Dramatic supply cap reductions (90% for WETH, 95.3% for cbETH) will severely restrict new deposits
Contracts0x9c4ec768c28520b50860ea7a15bd7213a9ff58bf0x420000000000000000000000000000000000000600x2ae3f1ec7f1f5012cfeab0185bfc7aa3cf0dec22
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

233 words

Compound v3 Base USDbC Collateral Factor Reduction & Interest Rate Recommendations (September 2024)

Summary

Gauntlet recommends the following risk recommendations to the protocol:

  • Decrease WETH Liquidation Collateral Factor from 84% to 74%
  • Decrease cbETH Liquidation Collateral Factor from 80% to 70%
  • Decrease WETH Borrow Collateral Factor from 79% to 69%
  • Decrease cbETH Borrow Collateral Factor from 75% to 65%
  • Decreasee WETH Supply Cap from 11,000 to 1,100
  • Decreasee cbETH Supply Cap from 7,500 to 350

Gauntlet also recommends setting the Base USDbC IR curves to the following parameters:

ParameterRecommended Value
Annual Supply Interest Rate Base0
Annual Supply Interest Rate Slope Low0.025
Supply Kink0.9
Annual Supply Interest Rate Slope High4.3
Annual Borrow Interest Rate Base0.025
Annual Borrow Interest Rate Slope Low0.045
Borrow Kink0.9
Annual Borrow Interest Rate Slope High6

Motivation

This recommendation aims to proceed with Compound v3 Base USDbC deprecation.

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

1 total
#0sendMessage(address,bytes,uint32)chain 0x1
Target
0x866e…0afa
Value
0 wei
Function
sendMessage(address,bytes,uint32)
Arguments
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Calldata

05Tally

Summed from votes

Voters0
VP participating0
Outcome (current)—
Current support—

06Voters

0 total

No votes recorded yet.

07Forum

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

Arguments for

None surfaced.

Arguments against

None surfaced.

Notable participants

  • GauntletProposer presenting risk analysis and collateral factor reduction recommendations for Compound v3 Base USDbC.
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
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