KVORUM
compoundSource: Compound governor bravo · #386

[Gauntlet] - IR Curve and Incentive Recommendations for Stablecoin and WETH Comets - Part 6 & Cap recommendations

executedJan 11, 2025, 01:40 PM UTCby680x683a…6c02

01Summary

AISummary by Kvorumclaude-haiku-4-5

Gauntlet proposes increasing supply caps for cbBTC, sFRAX, and wstETH across Mainnet Comets, updating interest rate curves for WETH Comets across multiple chains (Ethereum, Arbitrum, Base, Optimism, Scroll), and deploying configurator upgrades to implement these changes.

Type
parameter change

Key changes

  • Increase USDC Mainnet cbBTC supply cap from 650 to 900(medium)
  • Increase USDT Mainnet cbBTC supply cap from 93 to 500(medium)
  • Increase USDT Mainnet sFRAX supply cap from 20,000,000 to 30,000,000(medium)
  • Increase USDT Mainnet wstETH supply cap from 45,000 to 60,000(medium)
  • Update WETH Comet interest rate curve parameters across Ethereum, Arbitrum, Base, Optimism, and Scroll including adjustments to borrow rate slope low (0.0145 to 0.0155), borrow rate slope high (1.5 to 1.26), supply rate slope low (0.0165 to 0.0216), and supply rate slope high (1.2 to 1.125)(high)
  • Deploy and upgrade Configurator contracts on Ethereum and cross-chain via bridge messages to Base and Optimism(high)

Notable concerns

  • Supply cap increases aim to increase capital efficiency but may increase protocol risk exposure to these assets
  • Interest rate curve changes across multiple chains require coordinated execution and monitoring
Contracts0xc3d688B66703497DAA19211EEdff47f25384cdc30x3Afdc9BCA9213A35503b077a6072F3D0d5AB08400x1ec63b5883c3481134fd50d5daebc83ecd2e87790x25ace71c97b33cc4729cf772ae268934f7ab5fa10x866e82a600a1414e583f7f13623f1ac5d58b0afa
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

365 words

[Gauntlet] - IR Curve and Incentive Recommendations for Stablecoin and WETH Comets - Part 6 & Cap recommendations

Summary

Gauntlet recommends the following risk recommendations to the protocol:

  • Increase USDC Mainnet cbBTC supply cap from 650 to 900
  • Increase USDT Mainnet cbBTC supply cap from 93 to 500
  • Increase USDT Mainnet sFRAX supply cap from 20,000,000 to 30,000,000
  • Increase USDT Mainnet wstETH supply cap from 45,000 to 60,000

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 6 of the overarching recommendations to be implemented. In this proposal we specifically target Base WETH and Optimism WETH comet's IR curves.

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

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.

  • Jan 4
  • 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

8 total
#0updateAssetSupplyCap(address,address,uint128)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
updateAssetSupplyCap(address,address,uint128)
Arguments
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Calldata
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Target
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Value
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Function
deployAndUpgradeTo(address,address)
Arguments
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Calldata
#2updateAssetSupplyCap(address,address,uint128)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
updateAssetSupplyCap(address,address,uint128)
Arguments
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Calldata
#3updateAssetSupplyCap(address,address,uint128)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
updateAssetSupplyCap(address,address,uint128)
Arguments
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Calldata
#4updateAssetSupplyCap(address,address,uint128)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
updateAssetSupplyCap(address,address,uint128)
Arguments
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Calldata
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Target
0x1ec6…8779
Value
0 wei
Function
deployAndUpgradeTo(address,address)
Arguments
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Calldata
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Target
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Value
0 wei
Function
sendMessage(address,bytes,uint32)
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Calldata
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Target
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Value
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Function
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Arguments
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Calldata

05Tally

Summed from votes

Voters20
VP participating760.4K
Outcome (current)For
Current support100%

06Voters

20 total
Filter:
VoterChoice% of totalRationale
660x66cd…65f9For80K10.53%—2y ago
B90xb933…8dd1For80K10.52%—2y ago
2B0x2b38…bf33For80K10.52%—2y ago
070x0703…961bFor80K10.52%—2y ago
130x13bd…8548For80K10.52%—2y ago
3F0x3fb1…4c8aFor80K10.52%—2y ago
B40xb49f…7948For80K10.52%—2y ago
B30xb356…c826For50.3K6.62%—2y ago
470x47c1…4770For50K6.58%—2y ago
050x0579…ca09For50K6.58%—2y ago
DC0xdc1f…e432For50K6.58%—2y ago
E40xe459…e666For5.20.00%—2y ago
210x21b3…fa75For20.00%—2y ago
B70xb792…89d7For20.00%—2y ago
3D0x3ddc…05b0For1.20.00%—2y ago
8B0x8bb9…ccc2For1.10.00%—2y ago
170x1729…b879For10.00%—2y ago
060x06c4…66a2For0.10.00%—2y ago
D80xd8de…ae41For0.10.00%—2y ago
750x75f4…d71fFor00.00%—2y ago
Showing 20

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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