Depreciate cWETHv3 on Ronin
01Summary
This proposal deprecates the cWETHv3 market on Ronin by updating price feeds to API3 (due to Chainlink discontinuing support), setting supply caps to 0, reducing collateral factors, increasing liquidation penalties, and updating interest rate curve parameters to make the market less appealing while preventing new suppliers from entering and reducing risk.
- Type
- protocol deprecation
- Funding
- $1.002319064245711790
Key changes
- Update USDC, AXS, and WRON price feeds from Chainlink to API3 oracle(high)
- Set supply caps to 0 for all collateral assets to prevent new suppliers from entering the market(high)
- Reduce collateral factors across assets(high)
- Increase liquidation penalties to disincentivize market usage and increase liquidation costs(high)
- Update interest rate curve parameters including borrow and supply base rates, slopes, and kinks(medium)
- Deploy and upgrade to new configuration via deployAndUpgradeTo(high)
Notable concerns
- Market deprecation may impact existing WETH suppliers and borrowers on Ronin
- Changes designed to reduce capital efficiency and make market less appealing without causing liquidation of existing users
Generated by Kvorum
02Description
Depreciate cWETHv3 on Ronin
Proposal summary
This proposal updates price feeds to API3, since Chainlink soon will no longer support Ronin and updates interest rate curve parameters for WETH market on Ronin.
It is done to prevent new suppliers from entering the market, reduces capital efficiency, making the market less appealing without causing users to become liquidatable and raises liquidation penalty to further disincentivizes usage by increasing the cost of liquidation, while reducing risk to the comet.
Further detailed information can be found on the corresponding proposal pull request and forum discussion.
Proposal actions
The first proposal action approves the L1CCIPRouter to transfer GHO stable token from the timelock to pay for the proposal execution fee on Ronin.
The second proposal action sends the following encoded calls to the governance receiver on Ronin:
- Update USDC, AXS, and WRON price feeds to API3 oracle
- Set supply caps to 0 for all collateral assets
- Reduce collateral factors
- Increase liquidation penalties
- Update interest rate curve parameters:
setBorrowPerYearInterestRateBasesetBorrowPerYearInterestRateSlopeLowsetBorrowKinksetBorrowPerYearInterestRateSlopeHighsetSupplyPerYearInterestRateBasesetSupplyPerYearInterestRateSlopeLowsetSupplyKinksetSupplyPerYearInterestRateSlopeHigh
- Deploy and upgrade to new configuration via
deployAndUpgradeTo.
03Mismatch analysis
The proposal has two on-chain actions. Action 0 is a straightforward GHO approval to the L1CCIPRouter, matching the description's claim that it funds the Ronin execution fee. Action 1 is a single ccipSend call, but its encoded payload (decoded from the embedded ABI-encoded call data) contains a sequence of sub-calls whose function selectors are directly visible in the payload: three 'updateAsset(address,(address,address,address,uint8,uint64,uint64,uint64,uint128))' calls (which bundle price-feed updates, collateral-factor changes, liquidation-factor changes, and supply caps set to 0 for the last parameter in each call), followed by exactly the eight interest-rate setter functions named in the description ('setBorrowPerYearInterestRateBase', 'setBorrowPerYearInterestRateSlopeLow', 'setBorrowKink', 'setBorrowPerYearInterestRateSlopeHigh', and their supply-side counterparts), and a final 'deployAndUpgradeTo(address,address)' call. Every bullet the description lists (price feed update, supply cap to 0, collateral factor reduction, liquidation penalty increase, interest rate curve updates, deploy-and-upgrade) is represented by an identifiable sub-call in the payload, and no extra sub-calls appear beyond what's described. I could not independently verify the exact numeric direction of each parameter change (e.g., confirming collateral factors decreased and liquidation penalties increased by inspecting raw hex values) with full certainty, which is why confidence is medium rather than high, but the structural correspondence between the described bullet list and the decoded function names is exact, so I found no discrepancy worth flagging.
Generated by Kvorum
04Actions
- Target
- 0x40d1…6c2f
- Value
- 0 wei
- Function
- approve(address,uint256)
- Arguments
{ "amount": "1002319064245711790", "address": "0x80226fc0Ee2b096224EeAc085Bb9a8cba1146f7D" }- Calldata
- Target
- 0x8022…6f7d
- Value
- 0 wei
- Function
- ccipSend(uint64,(bytes,bytes,(address,uint256)[],address,bytes))
- Arguments
{ "message": [ "0x0000000000000000000000002c7efa766338d33b9192db1fb5d170bdc03ef3f9", 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[], "0x40D16FC0246aD3160Ccc09B8D0D3A2cD28aE6C2f", "0x" ], "destinationChainSelector": "6916147374840168594" }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 3F0x3fb1…4c8a | For | 104.8K | 14.19% | — | 9mo ago |
| 660x66cd…65f9 | For | 80K | 10.83% | — | 9mo ago |
| 680x683a…6c02 | For | 61.2K | 8.28% | — | 9mo ago |
| B30xb356…c826 | For | 60.1K | 8.15% | — | 9mo ago |
| 050x0579…ca09 | For | 60K | 8.13% | — | 9mo ago |
| 170x1729…b879 | For | 60K | 8.13% | — | 9mo ago |
| B70xb792…89d7 | For | 60K | 8.13% | — | 9mo ago |
| D20xd2a7…5a0c | For | 60K | 8.13% | — | 9mo ago |
| B90xb933…8dd1 | For | 60K | 8.13% | — | 9mo ago |
| 070x0703…961b | For | 51.7K | 7.01% | — | 9mo ago |
| 4F0x4f89…fd3c | For | 50K | 6.77% | — | 9mo ago |
| 130x13bd…8548 | For | 30K | 4.06% | — | 9mo ago |
| 1F0x1f3d…0591 | For | 440.7 | 0.06% | — | 9mo ago |
| 220x2210…d02e | For | 35.2 | 0.00% | — | 9mo ago |
| C50xc554…7759 | For | 11.2 | 0.00% | — | 9mo ago |
| 8B0x8bb9…ccc2 | For | 1.1 | 0.00% | — | 9mo ago |
| 010x0151…c3b9 | For | 1.1 | 0.00% | — | 9mo ago |
| 2F0x2f2f…f78a | For | 0.5 | 0.00% | — | 9mo ago |
| BA0xba03…b48b | For | 0.1 | 0.00% | — | 9mo ago |
| D80xd8de…ae41 | For | 0.1 | 0.00% | — | 9mo ago |
| CD0xcde3…ff68 | For | 0 | 0.00% | — | 9mo ago |
07Forum
- [Gauntlet] Deprecating Ronin WETH and WRON Comets ↗discourse · high confidence
Arguments for
- Deprecating Ronin markets with zero supply caps and reduced collateral factors prevents new suppliers from entering while avoiding forced liquidations of existing users.— Gauntlet, dmitriywoofsoftware
- Increased liquidation penalties reduce risk to the comet by disincentivizing usage without immediately harming existing positions.— Gauntlet, dmitriywoofsoftware
- Migrating price feeds from Chainlink to API3 is necessary since Chainlink will no longer support Ronin.— dmitriywoofsoftware
- All technical tests and simulations passed successfully, demonstrating the proposal is ready for implementation.— dmitriywoofsoftware
Arguments against
None surfaced.
Notable participants
- GauntletRisk analyst who provided the initial deprecation strategy and parameter recommendations for Ronin markets.
- dmitriywoofsoftwareCore contributor who implemented the technical proposals, ran all tests and simulations, and submitted both cWETHv3 and cWRONv3 deprecation proposals.
- allthecolorsCommunity participant who raised a minor terminology correction about the word 'deprecate' versus 'depreciate'.
Generated by Kvorum
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