[Gauntlet] - IR Curve and Incentive Recommendations for Stablecoin and WETH Comets - Part 1
01Summary
Gauntlet recommends updating interest rate curves and COMP reward incentives across WETH and Stablecoin Comets on multiple chains (Ethereum, Arbitrum, Base, Optimism, Scroll, Polygon). Changes include adjusting borrow and supply interest rate slopes and modifying COMP supply/borrow rewards allocations to align with market demand.
- Type
- parameter change
Key changes
- WETH Comet borrow interest rate slope low adjusted from 0.0145 to 0.0155 on Ethereum(medium)
- WETH Comet borrow interest rate slope high reduced from 1.5 to 1.26 on Ethereum(medium)
- WETH Comet supply interest rate slope low increased from 0.0165 to 0.0216 on Ethereum(medium)
- WETH Comet supply interest rate slope high reduced from 1.2 to 1.125 on Ethereum(medium)
- Stablecoin Comet borrow interest rate slope low increased from 0.0333 to 0.05(medium)
- Stablecoin Comet borrow interest rate slope high reduced from 4 to 3.4(medium)
- Stablecoin Comet supply interest rate slope low increased from 0.039 to 0.054(medium)
- Stablecoin Comet supply interest rate slope high reduced from 3.6 to 3.034(medium)
Notable concerns
- COMP borrow rewards eliminated entirely on Base WETH, Optimism WETH, Base USDC, Polygon USDC, Polygon USDT, Optimism USDT, Optimism USDC, and Scroll USDC
- Polygon USDC and USDT supply rewards eliminated entirely
- Implementation spans multiple blockchain networks requiring coordinated updates
Generated by Kvorum
02Description
[Gauntlet] - IR Curve and Incentive Recommendations for Stablecoin and WETH Comets - Part 1
Summary
Gauntlet recommends updating the interest rate curves as well as COMP rewards for WETH and Stablecoin Comets.
WETH Comets
The recommended curves are for the following comets:
| Comet |
|---|
| Ethereum WETH |
| Arbitrum WETH |
| Base WETH |
| Optimism WETH |
| Scroll WETH |
| Parameter | Current Value | Recommended Value |
|---|---|---|
| Annual Borrow Interest Rate Base | 0.01 | 0.01 |
| Annual Borrow Interest Rate Slope Low | 0.0145 | 0.0155 |
| Borrow Kink | 0.9 | 0.9 |
| Annual Borrow Interest Rate Slope High | 1.5 | 1.26 |
| Annual Supply Interest Rate Base | 0 | 0 |
| Annual Supply Interest Rate Slope Low | 0.0165 | 0.0216 |
| Supply Kink | 0.9 | 0.9 |
| Annual Supply Interest Rate Slope High | 1.2 | 1.125 |
Stablecoin Comets
The recommended curves are for the following comets:
| Comet |
|---|
| Ethereum USDC |
| Ethereum USDT |
| Ethereum USDS |
| Arbitrum USDC Native |
| Arbitrum USDT |
| Base USDC Native |
| Polygon USDC |
| Polygon USDT |
| Optimism USDT |
| Optimism USDC |
| Scroll USDC |
| Parameter | Current Value | Recommended Value |
|---|---|---|
| Annual Borrow Interest Rate Base | 0.015 | 0.015 |
| Annual Borrow Interest Rate Slope Low | 0.0333 | 0.05 |
| Borrow Kink | 0.9 | 0.9 |
| Annual Borrow Interest Rate Slope High | 4 | 3.4 |
| Annual Supply Interest Rate Base | 0 | 0 |
| Annual Supply Interest Rate Slope Low | 0.039 | 0.054 |
| Supply Kink | 0.9 | 0.9 |
| Annual Supply Interest Rate Slope High | 3.6 | 3.034 |
| Comet | Current COMP Supply Rewards | Recommended COMP Supply Rewards | Current COMP Borrow Rewards | Recommended COMP Borrow Rewards |
|---|---|---|---|---|
| Ethereum WETH | 35 | No Change | 20 | 5 |
| Arbitrum WETH | 6 | 10 | 15 | 5 |
| Base WETH | 6 | No Change | 1 | 0 |
| Optimism WETH | 10 | No Change | 5 | 0 |
| Ethereum USDC | 70 | No Change | 71 | 35 |
| Ethereum USDT | 70 | No Change | 50 | 25 |
| Ethereum USDS | 25 | No Change | 25 | 5 |
| Arbitrum USDC | 17 | 20 | 50 | 10 |
| Arbitrum USDT | 7 | 15 | 35 | 10 |
| Base USDC | 13 | No Change | 5 | 0 |
| Polygon USDC | 8 | 0 | 3 | 0 |
| Polygon USDT | 8 | 0 | 4 | 0 |
| Optimism USDT | 5 | No Change | 5 | 0 |
| Optimism USDC | 5 | No Change | 5 | 0 |
| Scroll USDC | 6 | No Change | 2 | 0 |
Motivation
Gauntlet recommends updating the interest rate curve parameters across all WETH and Stablecoin comets to align with market demand. 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
I compared the prose's claimed scope (IR curve changes for 5 WETH comets and 11 stablecoin comets across 6 chains, plus COMP reward speed changes for 15 comets) against the 10 decoded actions. The calldata only sets borrow/supply slope-low and slope-high values (via Configurator) and deploys/upgrades two Comet proxies, both on Ethereum mainnet — one whose new slope values exactly match the WETH recommendation (0.0155/1.26/0.0216/1.125) and one matching the stablecoin recommendation (0.05/3.4/0.054/3.034). Base rates and kinks are correctly omitted since they are unchanged, which is fine. However, there are two material gaps: (1) the description's entire COMP rewards table describing changes to 15 comets is not reflected in any calldata action — no reward-speed setter is called at all; (2) the description implies this proposal updates curves for many comets across Arbitrum, Base, Optimism, Scroll, and Polygon, but the calldata only touches two Ethereum-mainnet comets. This may be intentional if this is genuinely only 'Part 1' covering a subset, but the description does not clarify that only these two comets/chains are in scope for this specific vote, so a delegate reading the tables could reasonably believe the full scope (all comets, all chains, plus rewards) is being enacted now. This is a material discrepancy in scope and completeness, though not evidence of fund diversion or malicious redirection, so I stopped short of 'severe'.'
Discrepancies
- highextra in description
The description lists COMP supply/borrow reward speed changes for 15 comets (e.g., Ethereum WETH borrow rewards 20→5, Arbitrum WETH supply 6→10, Polygon USDC/USDT set to 0, etc.), but none of the 10 decoded actions call any reward-speed setter (e.g., setRewardConfig or similar). No COMP incentive changes are executed on-chain by this proposal.
“| Ethereum WETH | 35 | No Change | 20 | 5 |”
- highextra in description
The description presents IR curve updates for 5 WETH comets and 11 stablecoin comets spanning Ethereum, Arbitrum, Base, Optimism, Scroll, and Polygon. The calldata only updates two comet contracts, both on Ethereum mainnet (chain 0x1) — one matching the WETH recommended slope values and one matching the stablecoin recommended slope values. No actions target Arbitrum, Base, Optimism, Scroll, or Polygon, and no other comet besides these two is touched.
“The recommended curves are for the following comets: Ethereum WETH, Arbitrum WETH, Base WETH, Optimism WETH, Scroll WETH”
Generated by Kvorum
04Actions
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setBorrowPerYearInterestRateSlopeLow(address,uint64)
- Arguments
{ "0": "0xA17581A9E3356d9A858b789D68B4d866e593aE94", "1": "15500000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setBorrowPerYearInterestRateSlopeHigh(address,uint64)
- Arguments
{ "0": "0xA17581A9E3356d9A858b789D68B4d866e593aE94", "1": "1260000000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setSupplyPerYearInterestRateSlopeLow(address,uint64)
- Arguments
{ "0": "0xA17581A9E3356d9A858b789D68B4d866e593aE94", "1": "21600000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setSupplyPerYearInterestRateSlopeHigh(address,uint64)
- Arguments
{ "0": "0xA17581A9E3356d9A858b789D68B4d866e593aE94", "1": "1125000000000000000" }- Calldata
- Target
- 0x1ec6…8779
- Value
- 0 wei
- Function
- deployAndUpgradeTo(address,address)
- Arguments
{ "0": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3", "1": "0xA17581A9E3356d9A858b789D68B4d866e593aE94" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setBorrowPerYearInterestRateSlopeLow(address,uint64)
- Arguments
{ "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3", "1": "50000000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setBorrowPerYearInterestRateSlopeHigh(address,uint64)
- Arguments
{ "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3", "1": "3400000000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setSupplyPerYearInterestRateSlopeLow(address,uint64)
- Arguments
{ "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3", "1": "54000000000000000" }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setSupplyPerYearInterestRateSlopeHigh(address,uint64)
- Arguments
{ "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3", "1": "3034000000000000000" }- Calldata
- Target
- 0x1ec6…8779
- Value
- 0 wei
- Function
- deployAndUpgradeTo(address,address)
- Arguments
{ "0": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3", "1": "0xc3d688B66703497DAA19211EEdff47f25384cdc3" }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| B90xb933…8dd1 | For | 80K | 0.00% | — | 2y ago |
| 660x66cd…65f9 | For | 80K | 0.00% | — | 2y ago |
| 130x13bd…8548 | For | 80K | 0.00% | — | 2y ago |
| 3F0x3fb1…4c8a | For | 80K | 0.00% | — | 2y ago |
| B40xb49f…7948 | For | 80K | 0.00% | — | 2y ago |
| 220x2210…d02e | For | 50K | 0.00% | — | 2y ago |
| 050x0579…ca09 | For | 50K | 0.00% | — | 2y ago |
| 720x72c5…7708 | For | 1.2K | 0.00% | — | 2y ago |
| BE0xbe1d…c953 | For | 231 | 0.00% | — | 2y ago |
| 050x0579…4048 | For | 11.2 | 0.00% | — | 2y ago |
| 210x21b3…fa75 | For | 2 | 0.00% | — | 2y ago |
| B70xb792…89d7 | For | 2 | 0.00% | — | 2y ago |
| 3D0x3ddc…05b0 | For | 1.2 | 0.00% | — | 2y ago |
| 170x1729…b879 | For | 1 | 0.00% | — | 2y ago |
| 2F0x2f2f…f78a | For | 0.5 | 0.00% | — | 2y ago |
| 6D0x6de8…5dfd | For | 0.2 | 0.00% | — | 2y ago |
07Forum
- [Gauntlet] - IR Curve and Incentive Recommendations for Stablecoin and WETH Comets ↗discourse · high confidence
Arguments for
- IR curve adjustments align Compound's rates with prevailing market conditions and optimize borrow APR pricing across WETH and stablecoin Comets.— Gauntlet, Tane
- Revised COMP reward allocation improves incentive efficiency by better matching reward distribution to actual supply and borrow activity levels.— Gauntlet
- Supply cap increases based on >75% utilization threshold accommodate growing demand and prevent artificial constraints on asset growth.— Gauntlet
Arguments against
None surfaced.
Unresolved concerns
- The on-chain proposal included supply cap increases not prominently discussed in the forum thread, raising questions about transparency of scope changes.— Tane
- Unclear whether detailed utilization trends and liquidity assessments should be included in future proposals to improve transparency and rationale clarity.— Tane
Notable participants
- GauntletProposal author and primary technical contributor providing IR curve recommendations and supply cap methodology.
- TaneConstructive reviewer who voted in favor while raising transparency concerns about scope and methodology documentation.
Generated by Kvorum
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