KVORUM
compoundSource: Compound governor bravo · #383

[Gauntlet] - IR Curve and Incentive Recommendations for Stablecoin and WETH Comets - Part 3

executedDec 22, 2024, 01:36 PM UTCby680x683a…6c02

01Summary

AISummary by Kvorumclaude-haiku-4-5

Gauntlet recommends updating interest rate curve parameters across WETH and Stablecoin Comets on Ethereum, Arbitrum, Base, Optimism, Scroll, and Polygon to align with market demand. The proposal modifies borrow and supply interest rate slopes for these assets. On-chain actions update parameters for Ethereum USDT and deploy related upgrades, with cross-chain messaging to Arbitrum.

Type
parameter change

Key changes

  • WETH Comet: Increase Annual Borrow Interest Rate Slope Low from 0.0145 to 0.0155(medium)
  • WETH Comet: Decrease Annual Borrow Interest Rate Slope High from 1.5 to 1.26(medium)
  • WETH Comet: Increase Annual Supply Interest Rate Slope Low from 0.0165 to 0.0216(medium)
  • WETH Comet: Decrease Annual Supply Interest Rate Slope High from 1.2 to 1.125(medium)
  • Stablecoin Comet: Increase Annual Borrow Interest Rate Slope Low from 0.0333 to 0.05(medium)
  • Stablecoin Comet: Decrease Annual Borrow Interest Rate Slope High from 4 to 3.4(medium)
  • Stablecoin Comet: Increase Annual Supply Interest Rate Slope Low from 0.039 to 0.054(medium)
  • Stablecoin Comet: Decrease Annual Supply Interest Rate Slope High from 3.6 to 3.034(medium)

Notable concerns

  • Implementation spans multiple chains (Ethereum, Arbitrum, Base, Optimism, Scroll, Polygon) which increases complexity
  • Proposal is Part 3 of overarching recommendations, suggesting phased implementation approach
Contracts0x316f9708bb98af7da9c68c1c3b5e79039cd336e30x1ec63b5883c3481134fd50d5daebc83ecd2e87790x4dbd4fc535ac27206064b68ffcf827b0a60bab3f
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

408 words

[Gauntlet] - IR Curve and Incentive Recommendations for Stablecoin and WETH Comets - Part 3

Summary

Gauntlet recommends updating the interest rate curves as well as COMP rewards for WETH and Stablecoin Comets. This proposal is Part 3 of the overarching recommendations to be implemented. In this proposal we specifically target Mainnet USDT, Arbitrum USDC and Arbitrum WETH comet's IR curves.

WETH 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

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

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 Kvorum

A calldata-vs-description analysis is not generated yet. Review the decoded actions →

04Actions

6 total
#0setBorrowPerYearInterestRateSlopeLow(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setBorrowPerYearInterestRateSlopeLow(address,uint64)
Arguments
{
  "0": "0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840",
  "1": "50000000000000000"
}
Calldata
#1setBorrowPerYearInterestRateSlopeHigh(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setBorrowPerYearInterestRateSlopeHigh(address,uint64)
Arguments
{
  "0": "0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840",
  "1": "3400000000000000000"
}
Calldata
#2setSupplyPerYearInterestRateSlopeLow(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setSupplyPerYearInterestRateSlopeLow(address,uint64)
Arguments
{
  "0": "0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840",
  "1": "54000000000000000"
}
Calldata
#3setSupplyPerYearInterestRateSlopeHigh(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setSupplyPerYearInterestRateSlopeHigh(address,uint64)
Arguments
{
  "0": "0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840",
  "1": "3034000000000000000"
}
Calldata
#4deployAndUpgradeTo(address,address)chain 0x1
Target
0x1ec6…8779
Value
0 wei
Function
deployAndUpgradeTo(address,address)
Arguments
{
  "0": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3",
  "1": "0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840"
}
Calldata
#5createRetryableTicket(address,uint256,uint256,address,address,uint256,uint256,bytes)chain 0x1
Target
0x4dbd…ab3f
Value
6677265000000000 wei
Function
createRetryableTicket(address,uint256,uint256,address,address,uint256,uint256,bytes)
Arguments
{
  "0": "0x42480C37B249e33aABaf4c22B20235656bd38068",
  "1": "0",
  "2": "4427210000000000",
  "3": "0x3fB4d38ea7EC20D91917c09591490Eeda38Cf88A",
  "4": "0x3fB4d38ea7EC20D91917c09591490Eeda38Cf88A",
  "5": "4500110",
  "6": "500000000",
  "7": "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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 · 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 ↗