Risk Parameter Updates for UNI, LINK, MKR, AAVE, YFI, and SUSHI
01Summary
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
Generated by Kvorum
02Description
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
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
04Actions
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCollateralFactor(address,uint256)
- Arguments
{ "0": "0xe65cdB6479BaC1e22340E4E755fAE7E509EcD06c", "1": "650000000000000000" }- Calldata
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCollateralFactor(address,uint256)
- Arguments
{ "0": "0xFAce851a4921ce59e912d19329929CE6da6EB0c7", "1": "750000000000000000" }- Calldata
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCollateralFactor(address,uint256)
- Arguments
{ "0": "0x95b4eF2869eBD94BEb4eEE400a99824BF5DC325b", "1": "600000000000000000" }- Calldata
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCollateralFactor(address,uint256)
- Arguments
{ "0": "0x4B0181102A0112A2ef11AbEE5563bb4a3176c9d7", "1": "600000000000000000" }- Calldata
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCollateralFactor(address,uint256)
- Arguments
{ "0": "0x35A18000230DA775CAc24873d00Ff85BccdeD550", "1": "750000000000000000" }- Calldata
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCollateralFactor(address,uint256)
- Arguments
{ "0": "0x80a2AE356fc9ef4305676f7a3E2Ed04e12C33946", "1": "650000000000000000" }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
- Risk Parameter Updates 2022-02-11 ↗discourse · high confidence
- Dynamic Risk Parameters ↗discourse · high confidence
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
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