KVORUM
compoundSource: Compound governor bravo · #378

[Gauntlet] - IR Curve and Incentive Recommendations for Stablecoin and WETH Comets - Part 1

executedDec 14, 2024, 01:40 PM UTCby680x683a…6c02

01Summary

AISummary by Kvorumclaude-haiku-4-5

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
Contracts0xA17581A9E3356d9A858b789D68B4d866e593aE940xc3d688B66703497DAA19211EEdff47f25384cdc30x316f9708bb98af7da9c68c1c3b5e79039cd336e3
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

616 words

[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

ParameterCurrent ValueRecommended Value
Annual Borrow Interest Rate Base0.010.01
Annual Borrow Interest Rate Slope Low0.01450.0155
Borrow Kink0.90.9
Annual Borrow Interest Rate Slope High1.51.26
Annual Supply Interest Rate Base00
Annual Supply Interest Rate Slope Low0.01650.0216
Supply Kink0.90.9
Annual Supply Interest Rate Slope High1.21.125

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

ParameterCurrent ValueRecommended Value
Annual Borrow Interest Rate Base0.0150.015
Annual Borrow Interest Rate Slope Low0.03330.05
Borrow Kink0.90.9
Annual Borrow Interest Rate Slope High43.4
Annual Supply Interest Rate Base00
Annual Supply Interest Rate Slope Low0.0390.054
Supply Kink0.90.9
Annual Supply Interest Rate Slope High3.63.034

CometCurrent COMP Supply RewardsRecommended COMP Supply RewardsCurrent COMP Borrow RewardsRecommended COMP Borrow Rewards
Ethereum WETH35No Change205
Arbitrum WETH610155
Base WETH6No Change10
Optimism WETH10No Change50
Ethereum USDC70No Change7135
Ethereum USDT70No Change5025
Ethereum USDS25No Change255
Arbitrum USDC17205010
Arbitrum USDT7153510
Base USDC13No Change50
Polygon USDC8030
Polygon USDT8040
Optimism USDT5No Change50
Optimism USDC5No Change50
Scroll USDC6No Change20

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

AIMismatch analysis by Kvorumclaude-sonnet-5
Material discrepancy

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

04Actions

10 total
#0setBorrowPerYearInterestRateSlopeLow(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setBorrowPerYearInterestRateSlopeLow(address,uint64)
Arguments
{
  "0": "0xA17581A9E3356d9A858b789D68B4d866e593aE94",
  "1": "15500000000000000"
}
Calldata
#1setBorrowPerYearInterestRateSlopeHigh(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setBorrowPerYearInterestRateSlopeHigh(address,uint64)
Arguments
{
  "0": "0xA17581A9E3356d9A858b789D68B4d866e593aE94",
  "1": "1260000000000000000"
}
Calldata
#2setSupplyPerYearInterestRateSlopeLow(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setSupplyPerYearInterestRateSlopeLow(address,uint64)
Arguments
{
  "0": "0xA17581A9E3356d9A858b789D68B4d866e593aE94",
  "1": "21600000000000000"
}
Calldata
#3setSupplyPerYearInterestRateSlopeHigh(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setSupplyPerYearInterestRateSlopeHigh(address,uint64)
Arguments
{
  "0": "0xA17581A9E3356d9A858b789D68B4d866e593aE94",
  "1": "1125000000000000000"
}
Calldata
#4deployAndUpgradeTo(address,address)chain 0x1
Target
0x1ec6…8779
Value
0 wei
Function
deployAndUpgradeTo(address,address)
Arguments
{
  "0": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3",
  "1": "0xA17581A9E3356d9A858b789D68B4d866e593aE94"
}
Calldata
#5setBorrowPerYearInterestRateSlopeLow(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setBorrowPerYearInterestRateSlopeLow(address,uint64)
Arguments
{
  "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3",
  "1": "50000000000000000"
}
Calldata
#6setBorrowPerYearInterestRateSlopeHigh(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setBorrowPerYearInterestRateSlopeHigh(address,uint64)
Arguments
{
  "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3",
  "1": "3400000000000000000"
}
Calldata
#7setSupplyPerYearInterestRateSlopeLow(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setSupplyPerYearInterestRateSlopeLow(address,uint64)
Arguments
{
  "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3",
  "1": "54000000000000000"
}
Calldata
#8setSupplyPerYearInterestRateSlopeHigh(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setSupplyPerYearInterestRateSlopeHigh(address,uint64)
Arguments
{
  "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3",
  "1": "3034000000000000000"
}
Calldata
#9deployAndUpgradeTo(address,address)chain 0x1
Target
0x1ec6…8779
Value
0 wei
Function
deployAndUpgradeTo(address,address)
Arguments
{
  "0": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3",
  "1": "0xc3d688B66703497DAA19211EEdff47f25384cdc3"
}
Calldata

05Tally

Summed from votes

Voters0
VP participating0
Outcome (current)—
Current support—

06Voters

0 total
Filter:
VoterChoice% of totalRationale
B90xb933…8dd1For80K0.00%—2y ago
660x66cd…65f9For80K0.00%—2y ago
130x13bd…8548For80K0.00%—2y ago
3F0x3fb1…4c8aFor80K0.00%—2y ago
B40xb49f…7948For80K0.00%—2y ago
220x2210…d02eFor50K0.00%—2y ago
050x0579…ca09For50K0.00%—2y ago
720x72c5…7708For1.2K0.00%—2y ago
BE0xbe1d…c953For2310.00%—2y ago
050x0579…4048For11.20.00%—2y ago
210x21b3…fa75For20.00%—2y ago
B70xb792…89d7For20.00%—2y ago
3D0x3ddc…05b0For1.20.00%—2y ago
170x1729…b879For10.00%—2y ago
2F0x2f2f…f78aFor0.50.00%—2y ago
6D0x6de8…5dfdFor0.20.00%—2y ago
Showing 16

07Forum

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

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
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Open the thread ↗