KVORUM
compoundSource: Compound governor bravo · #385

[Gauntlet] - IR Curve and Incentive Recommendations for Stablecoin and WETH Comets - Part 5 & Cap recommendations

executedDec 25, 2024, 10:30 AM UTCby4D0x4d80…ef4b

01Summary

AISummary by Kvorumclaude-haiku-4-5

Gauntlet recommends increasing supply caps for wrsETH, weETH, and cbBTC across multiple Compound Comets, and updating interest rate curves for stablecoin Comets to align with market demand. This is Part 5 of the overarching IR and incentive recommendations.

Type
parameter change

Key changes

  • Increase Optimism V3 WETH Comet's wrsETH Supply Cap from 440 to 520(medium)
  • Increase Optimism V3 WETH Comet's weETH Supply Cap from 600 to 800(medium)
  • Increase Mainnet V3 USDC Comet's cbBTC Supply Cap from 180 to 650(high)
  • Increase Base V3 WETH Comet's weETH Supply Cap from 4,200 to 15,000(high)
  • Update Annual Borrow Interest Rate Slope Low from 0.0333 to 0.05 for stablecoin Comets(medium)
  • Update Annual Borrow Interest Rate Slope High from 4 to 3.4 for stablecoin Comets(medium)
  • Update Annual Supply Interest Rate Slope Low from 0.039 to 0.054 for stablecoin Comets(medium)
  • Update Annual Supply Interest Rate Slope High from 3.6 to 3.034 for stablecoin Comets(medium)

Notable concerns

  • Supply cap increases significantly expand asset exposure across multiple chains and Comets
  • Interest rate curve changes affect borrowing and lending economics across 11 stablecoin Comets on multiple chains
Contracts0xc3d688B66703497DAA19211EEdff47f25384cdc30x5D409e56D886231aDAf00c8775665AD0f9897b560x1ec63b5883c3481134fd50d5daebc83ecd2e8779
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

400 words

[Gauntlet] - IR Curve and Incentive Recommendations for Stablecoin and WETH Comets - Part 5 & Cap recommendations

Summary

Gauntlet recommends the following risk recommendations to the protocol:

  1. Increase Optimism V3 WETH Comet’s wrsETH Supply Cap from 440 to 520.
  2. Increase Optimism V3 WETH Comet’s weETH Supply Cap from 600 to 800.
  3. Increase Mainnet V3 USDC Comet’s cbBTC Supply Cap from 180 to 650.
  4. Increase Base V3 WETH Comet’s weETH Supply Cap from 4,200 to 15,000.

Along with the above Gauntlet recommends updating the interest rate curves as well as COMP rewards for WETH and Stablecoin Comets. This proposal is Part 5 of the overarching recommendations to be implemented. In this proposal we specifically target Mainnet USDS and Base USDC comet's IR curves.

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

This recommendation aims to increase supply caps for various assets across multiple Comets. Gauntlet recommends to increase supply caps to increase capital efficiency within the Comets.

Full proposal and forum discussions can be found in the following posts.

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

9 total
#0updateAssetSupplyCap(address,address,uint128)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
updateAssetSupplyCap(address,address,uint128)
Arguments
{
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  "2": "65000000000"
}
Calldata
#1deployAndUpgradeTo(address,address)chain 0x1
Target
0x1ec6…8779
Value
0 wei
Function
deployAndUpgradeTo(address,address)
Arguments
{
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  "1": "0xc3d688B66703497DAA19211EEdff47f25384cdc3"
}
Calldata
#2setBorrowPerYearInterestRateSlopeLow(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setBorrowPerYearInterestRateSlopeLow(address,uint64)
Arguments
{
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  "1": "50000000000000000"
}
Calldata
#3setBorrowPerYearInterestRateSlopeHigh(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setBorrowPerYearInterestRateSlopeHigh(address,uint64)
Arguments
{
  "0": "0x5D409e56D886231aDAf00c8775665AD0f9897b56",
  "1": "3400000000000000000"
}
Calldata
#4setSupplyPerYearInterestRateSlopeLow(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setSupplyPerYearInterestRateSlopeLow(address,uint64)
Arguments
{
  "0": "0x5D409e56D886231aDAf00c8775665AD0f9897b56",
  "1": "54000000000000000"
}
Calldata
#5setSupplyPerYearInterestRateSlopeHigh(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setSupplyPerYearInterestRateSlopeHigh(address,uint64)
Arguments
{
  "0": "0x5D409e56D886231aDAf00c8775665AD0f9897b56",
  "1": "3034000000000000000"
}
Calldata
#6deployAndUpgradeTo(address,address)chain 0x1
Target
0x1ec6…8779
Value
0 wei
Function
deployAndUpgradeTo(address,address)
Arguments
{
  "0": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3",
  "1": "0x5D409e56D886231aDAf00c8775665AD0f9897b56"
}
Calldata
#7sendMessage(address,bytes,uint32)chain 0x1
Target
0x25ac…5fa1
Value
0 wei
Function
sendMessage(address,bytes,uint32)
Arguments
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Calldata
#8sendMessage(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 · favorablethread · constructive

Arguments for

  • Supply cap increases are justified by high utilization rates (75%+) on various assets across chains, indicating market demand and the need to prevent caps from constraining legitimate user activity.— Gauntlet
  • Liquidation analysis shows acceptable slippage levels relative to liquidation penalties when caps are increased, indicating that larger caps can be safely accommodated without excessive risk.— Gauntlet
  • Top suppliers maintain strong health factors (often >1.4 to >4), demonstrating that large position holders are well-collateralized and pose low liquidation risk even at higher caps.— Gauntlet
  • Exchange rate oracles enable safer cap increases for assets like ezETH, wstETH, and weETH because liquidation pathways are constrained, reducing systemic risk from large caps.— Gauntlet
  • Asset supplies are growing and circulating supply on various chains supports higher cap levels relative to current utilization, allowing protocol to accommodate organic growth.— Gauntlet

Arguments against

None surfaced.

Unresolved concerns

  • sFRAX supply cap was increased since 12/9 but utilization data only shows through 12/8, leaving unclear whether the additional increase to 20M was justified by actual demand.— Tane
  • Top supplier data shown in images does not match the supplied amounts, raising questions about whether other large suppliers exist that should be displayed for transparency.— Tane
  • Top supplier addresses should be provided in text format rather than images for accessibility and to enable community verification of supplier identities and positions.— Tane

Notable participants

  • GauntletPrimary proposer issuing repeated supply cap recommendations backed by utilization data, slippage analysis, and top supplier health metrics.
  • TaneCommunity member raising questions about data currency, completeness of supplier disclosure, and format of supplier information.
  • dmitriywoofsoftwareCommunity participant who supported and accelerated one proposal to push it on-chain.
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
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