KVORUM
compoundSource: Compound governor bravo · #368

[Gauntlet] Risk Parameter Recommendations for LINK and UNI (Oct 2024) - Part Two

executedNov 24, 2024, 02:05 PM UTCby7B0x7b3c…cc33

01Summary

AISummary by Kvorumclaude-haiku-4-5

Gauntlet proposes adjusting risk parameters for LINK and UNI tokens in USDT Ethereum Comet to manage tail-risk assets. Changes include reducing supply caps for both assets, lowering collateral factors, increasing liquidation penalties for LINK, and adjusting liquidation factors for both tokens.

Type
parameter change

Key changes

  • Decrease LINK Supply Cap from 2,000,000 to 500,000(high)
  • Decrease UNI Supply Cap from 3,000,000 to 1,300,000(high)
  • Decrease LINK Collateral Factor from 79% to 73%(high)
  • Decrease LINK Liquidation Factor from 85% to 79%(high)
  • Increase LINK Liquidation Penalty from 7% to 17%(high)
  • Decrease UNI Collateral Factor from 75% to 68%(high)
  • Decrease UNI Liquidation Factor from 81% to 74%(high)
  • Increase UNI LP from 15% to 17%(medium)

Notable concerns

  • Significant reduction in supply caps may restrict LINK and UNI availability on the platform
  • Multiple concurrent parameter reductions for both assets increase complexity of risk management changes
Contracts0x316f9708bb98af7da9c68c1c3b5e79039cd336e30x3Afdc9BCA9213A35503b077a6072F3D0d5AB08400x1ec63b5883c3481134fd50d5daebc83ecd2e8779
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

186 words

[Gauntlet] Risk Parameter Recommendations for LINK and UNI (Oct 2024) - Part Two

Summary

Gauntlet recommends the following risk recommendations to the protocol:

  • Decrease USDT Ethereum Comet’s LINK Supply Cap from 2,000,000 to 500,000
  • Decrease USDT Ethereum Comet’s UNI Supply Cap from 3,000,000 to 1,300,000
  • Decrease USDT Ethereum Comet’s LINK Liquidation Factor from 85% to 79%
  • Decrease USDT Ethereum Comet’s LINK Collateral Factor from 79% to 73%
  • Increase USDT Ethereum Comet’s LINK Liquidation Penalty from 7% to 17%
  • Decrease USDT Ethereum Comet’s UNI Liquidation Factor from 81% to 74%
  • Decrease USDT Ethereum Comet’s UNI Collateral Factor from 75% to 68%
  • Increase USDT Ethereum Comet’s UNI LP from 15% to 17%

Motivation

This recommendation aims to review and adjust risk parameters for tail-risk assets across Comets.

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 Kvorumclaude-sonnet-5
Consistent

I mapped each of the 8 numeric parameter changes in the description to a corresponding decoded Configurator call for the USDT Ethereum Comet, converting all percentages to the 18-decimal fixed-point format used on-chain. LINK: collateral factor 79%->73% matches updateAssetBorrowCollateralFactor(730000000000000000); 'Liquidation Factor' 85%->79% matches updateAssetLiquidateCollateralFactor(790000000000000000); 'Liquidation Penalty' 7%->17% is consistent with updateAssetLiquidationFactor(830000000000000000), since penalty = 1 - liquidationFactor = 17%; supply cap 2,000,000->500,000 matches updateAssetSupplyCap(500000e18). UNI parameters follow the identical pattern and all match (collateral factor 68%, liquidation factor 74%, liquidation penalty derived from liquidationFactor 83% = 17%, supply cap 1,300,000). The final action (deployAndUpgradeTo) is the standard Comet Configurator finalization step explicitly referenced by the 'Specification' section ('updates the parameters by using the respective methods on the Configurator') and is routine boilerplate, not a hidden action. No value, target, or directional mismatches were found; all magnitudes and directions (increase/decrease) align with the calldata. Confidence is high because every numeric parameter in the description has a clear, correctly-valued counterpart in the decoded actions.

Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
Review the decoded actions ↗

04Actions

9 total
#0updateAssetBorrowCollateralFactor(address,address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
updateAssetBorrowCollateralFactor(address,address,uint64)
Arguments
{
  "0": "0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840",
  "1": "0x514910771AF9Ca656af840dff83E8264EcF986CA",
  "2": "730000000000000000"
}
Calldata
#1updateAssetLiquidateCollateralFactor(address,address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
updateAssetLiquidateCollateralFactor(address,address,uint64)
Arguments
{
  "0": "0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840",
  "1": "0x514910771AF9Ca656af840dff83E8264EcF986CA",
  "2": "790000000000000000"
}
Calldata
#2updateAssetLiquidationFactor(address,address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
updateAssetLiquidationFactor(address,address,uint64)
Arguments
{
  "0": "0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840",
  "1": "0x514910771AF9Ca656af840dff83E8264EcF986CA",
  "2": "830000000000000000"
}
Calldata
#3updateAssetSupplyCap(address,address,uint128)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
updateAssetSupplyCap(address,address,uint128)
Arguments
{
  "0": "0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840",
  "1": "0x514910771AF9Ca656af840dff83E8264EcF986CA",
  "2": "500000000000000000000000"
}
Calldata
#4updateAssetBorrowCollateralFactor(address,address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
updateAssetBorrowCollateralFactor(address,address,uint64)
Arguments
{
  "0": "0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840",
  "1": "0x1f9840a85d5aF5bf1D1762F925BDADdC4201F984",
  "2": "680000000000000000"
}
Calldata
#5updateAssetLiquidateCollateralFactor(address,address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
updateAssetLiquidateCollateralFactor(address,address,uint64)
Arguments
{
  "0": "0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840",
  "1": "0x1f9840a85d5aF5bf1D1762F925BDADdC4201F984",
  "2": "740000000000000000"
}
Calldata
#6updateAssetLiquidationFactor(address,address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
updateAssetLiquidationFactor(address,address,uint64)
Arguments
{
  "0": "0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840",
  "1": "0x1f9840a85d5aF5bf1D1762F925BDADdC4201F984",
  "2": "830000000000000000"
}
Calldata
#7updateAssetSupplyCap(address,address,uint128)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
updateAssetSupplyCap(address,address,uint128)
Arguments
{
  "0": "0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840",
  "1": "0x1f9840a85d5aF5bf1D1762F925BDADdC4201F984",
  "2": "1300000000000000000000000"
}
Calldata
#8deployAndUpgradeTo(address,address)chain 0x1
Target
0x1ec6…8779
Value
0 wei
Function
deployAndUpgradeTo(address,address)
Arguments
{
  "0": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3",
  "1": "0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840"
}
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 · favorablethread · constructive

Arguments for

  • Supply cap reductions align with consistently low utilization rates that have been sustained over time, making current caps inefficiently high.— Gauntlet
  • Collateral and liquidation factor adjustments improve risk management by reducing exposure to volatile assets (LINK at 66% annualized volatility, UNI at 86%) without immediately liquidating existing positions.— Gauntlet
  • Increased liquidation penalties (LINK from 7% to 17%) better compensate the protocol for liquidation costs given the assets' documented slippage and liquidity constraints.— Gauntlet
  • Risk parameter reductions are conservative and data-driven, backed by detailed analysis of DEX liquidity, volatility metrics, and current user positions.— Gauntlet

Arguments against

None surfaced.

Unresolved concerns

  • Whether the supply cap reductions may negatively impact users who want to supply LINK and UNI as collateral, potentially limiting protocol adoption of these assets.— Gauntlet
  • Whether the 75% increase in liquidation penalty (from 7% to 17% on LINK) may be perceived as excessive and could deter borrowing against these collaterals.— Gauntlet
  • Whether monitoring and adjustment cadence are sufficient to catch rapid changes in utilization or market conditions that might warrant parameter reversals.— Gauntlet

Notable participants

  • GauntletRisk assessment firm proposing parametric recommendations backed by quantitative analysis of utilization, liquidity, volatility, and user positions.
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Open the thread ↗