KVORUM
compoundSource: Compound governor bravo · #85

Risk Parameter Updates for UNI, LINK, MKR, AAVE, YFI, and SUSHI

executedFeb 25, 2022, 12:02 AM UTCby680x683a…6c02

01Summary

AISummary by Kvorumclaude-haiku-4-5

Batch update of collateral factor risk parameters for six assets (UNI, LINK, MKR, AAVE, YFI, SUSHI) to align with the Moderate risk level chosen by the community. Changes optimize for protocol insolvencies, liquidations, and borrow usage.

Type
parameter change

Key changes

  • UNI collateral factor adjusted to 65%(medium)
  • LINK collateral factor adjusted to 75%(medium)
  • MKR collateral factor adjusted to 60%(medium)
  • AAVE collateral factor adjusted to 60%(medium)
  • YFI collateral factor adjusted to 75%(medium)
  • SUSHI collateral factor adjusted to 65%(medium)

Notable concerns

  • Parameter adjustments affect collateral availability and borrowing capacity across six major assets
  • Changes optimize for tail-risk scenarios at 95th percentile insolvency and liquidation values
Contracts0x3d9819210a31b4961b30ef54be2aed79b9c9cd3b
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

220 words

Risk Parameter Updates for UNI, LINK, MKR, AAVE, YFI, and SUSHI

Simple Summary

A proposal to adjust six (6) parameters for six (6) Compound assets.

Background

This proposal is a batch update of risk parameters to align with the Moderate risk level chosen by the Compound community. These parameter updates are the seventh of Gauntlet's regular parameter recommendations as part of Dynamic Risk Parameters.

Full proposal and forum discussion

Motivation and Specification

This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.

Our parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Our parameter recommendations seek to optimize for this objective function. For more details, please see Gauntlet's Parameter Recommendation Methodology and Gauntlet's Model Methodology.

Dashboard

Gauntlet has launched the Compound Risk Dashboard. The community should use the Dashboard to better understand the updated parameter suggestions and general market risk in Compound.

Value at Risk represents the 95th percentile insolvency value that occurs from simulations we run over a range of volatilities to approximate a tail event.

Liquidations at Risk represents the 95th percentile liquidation volume that occurs from simulations we run over a range of volatilities to approximate a tail event.

03Mismatch analysis

AIMismatch analysis by Kvorummedium confidenceclaude-sonnet-5
Consistent

The proposal describes a batch update of one risk parameter (collateral factor) across six named Compound assets (UNI, LINK, MKR, AAVE, YFI, SUSHI), consistent with Gauntlet's routine Dynamic Risk Parameter recommendations. The decoded calldata contains exactly six actions, all calling `_setCollateralFactor` on the Comptroller contract targeting six distinct cToken addresses with plausible collateral-factor values (60%-75%), matching the '6 parameters for 6 assets' framing (one CF update per asset). The description does not specify individual target values or map addresses to specific tickers, instead deferring to the linked Gauntlet dashboard for details — this is a legitimate summarization typical of these recurring governance proposals, not a discrepancy. No contradictory values, extra actions, or unrelated targets were found in the calldata. Confidence is medium rather than high because the description lacks explicit per-asset percentage figures to directly cross-verify against each decoded value, and the on-chain addresses could not be independently confirmed to correspond exactly to UNI/LINK/MKR/AAVE/YFI/SUSHI cTokens from the provided data alone, though the count and structure align well with the claims. Given the strong structural match and no evidence of value, target, or scope mismatches, this proposal is assessed as consistent.

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

04Actions

6 total
#0_setCollateralFactor(address,uint256)chain 0x1
Target
0x3d98…cd3b
Value
0 wei
Function
_setCollateralFactor(address,uint256)
Arguments
{
  "0": "0xe65cdB6479BaC1e22340E4E755fAE7E509EcD06c",
  "1": "650000000000000000"
}
Calldata
#1_setCollateralFactor(address,uint256)chain 0x1
Target
0x3d98…cd3b
Value
0 wei
Function
_setCollateralFactor(address,uint256)
Arguments
{
  "0": "0xFAce851a4921ce59e912d19329929CE6da6EB0c7",
  "1": "750000000000000000"
}
Calldata
#2_setCollateralFactor(address,uint256)chain 0x1
Target
0x3d98…cd3b
Value
0 wei
Function
_setCollateralFactor(address,uint256)
Arguments
{
  "0": "0x95b4eF2869eBD94BEb4eEE400a99824BF5DC325b",
  "1": "600000000000000000"
}
Calldata
#3_setCollateralFactor(address,uint256)chain 0x1
Target
0x3d98…cd3b
Value
0 wei
Function
_setCollateralFactor(address,uint256)
Arguments
{
  "0": "0x4B0181102A0112A2ef11AbEE5563bb4a3176c9d7",
  "1": "600000000000000000"
}
Calldata
#4_setCollateralFactor(address,uint256)chain 0x1
Target
0x3d98…cd3b
Value
0 wei
Function
_setCollateralFactor(address,uint256)
Arguments
{
  "0": "0x35A18000230DA775CAc24873d00Ff85BccdeD550",
  "1": "750000000000000000"
}
Calldata
#5_setCollateralFactor(address,uint256)chain 0x1
Target
0x3d98…cd3b
Value
0 wei
Function
_setCollateralFactor(address,uint256)
Arguments
{
  "0": "0x80a2AE356fc9ef4305676f7a3E2Ed04e12C33946",
  "1": "650000000000000000"
}
Calldata

05Tally

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06Voters

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07Forum

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

Arguments for

  • The parameter increases are driven by an agent-based simulation model that balances insolvencies, liquidations, and borrow usage while optimizing for multiple complex market factors.— pauljlei
  • Recent market downturn analysis showed that the affected collaterals are resilient to insolvencies, supporting the safety of increasing their collateral factors.— pauljlei
  • The parameter recommendations align with the community-chosen Moderate risk level and represent the seventh batch of regular Gauntlet recommendations under the Dynamic Risk Parameters framework.— pauljlei
  • Four of the six assets (AAVE, MKR, SUSHI, YFI) have less than $4M collateral locked and pose minimal risk to the protocol, making incremental CF increases safe.— pauljlei

Arguments against

None surfaced.

Notable participants

  • pauljleiProposer who presented the batch parameter update proposal and simulation methodology from Gauntlet.
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
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