KVORUM
compoundSource: Compound governor oz · #590

Increase Collateral Factor for rsETH on Ethereum WETH Comet

executedJul 18, 2026, 02:48 AM UTCby680x683a…6c02

01Summary

AISummary by Kvorumclaude-haiku-4-5

Increase the borrow collateral factor for rsETH on Ethereum WETH Comet from 0% to 80% to allow existing rsETH-backed borrowers to gradually unwind their positions through partial repayment and iterative collateral withdrawal, rather than requiring full debt repayment upfront.

Type
parameter change

Key changes

  • Increase rsETH borrow collateral factor from 0% to 80% on Ethereum WETH Comet(high)
  • Enable orderly unwinding of looped rsETH/ETH positions through progressive collateral withdrawal(high)

Notable concerns

  • New collateral factor of 80% is below the original level of 88%, indicating a more conservative approach
  • Positions remain isolated on the Ethereum WETH Comet
Contracts0xA17581A9E3356d9A858b789D68B4d866e593aE940x316f9708bb98af7da9c68c1c3b5e79039cd336e30xA1290d69c65A6Fe4DF752f95823fae25cB99e5A7
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

137 words

Increase Collateral Factor for rsETH on Ethereum WETH Comet

Summary

Following the ongoing isolation of rsETH on the Ethereum WETH Comet, a mechanical constraint prevents existing rsETH-backed borrowers from unwinding their positions in an orderly manner. With the rsETH borrow collateral factor currently at 0%, the Comet requires a borrower to repay their outstanding WETH debt in full before any rsETH collateral can be withdrawn. For looped rsETH/ETH positions, this makes gradual, iterative unwinding impossible and forces a single full repayment that many users cannot complete in a single step.

To resolve this, Gauntlet recommends raising the borrow collateral factor for rsETH to 80%, below its original level of 88%, so that existing borrowers can partially repay and progressively withdraw collateral to wind down their positions.

More details about this proposal can be found here

03Mismatch analysis

AIMismatch analysis by Kvorum

A calldata-vs-description analysis is not generated yet. Review the decoded actions →

04Actions

2 total
#0updateAssetBorrowCollateralFactor(address,address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
updateAssetBorrowCollateralFactor(address,address,uint64)
Arguments
{
  "asset": "0xA1290d69c65A6Fe4DF752f95823fae25cB99e5A7",
  "cometProxy": "0xA17581A9E3356d9A858b789D68B4d866e593aE94",
  "newBorrowCF": "800000000000000000"
}
Calldata
#1deployAndUpgradeTo(address,address)chain 0x1
Target
0x1ec6…8779
Value
0 wei
Function
deployAndUpgradeTo(address,address)
Arguments
{
  "cometProxy": "0xA17581A9E3356d9A858b789D68B4d866e593aE94",
  "configuratorProxy": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3"
}
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

  • The 0% borrow collateral factor mechanically traps legacy rsETH/ETH borrowers by blocking collateral withdrawal until full debt repayment, while the proposed 80% factor (below the original 88%) enables iterative unwinding without allowing new rsETH to enter the market since the supply cap remains at 0.— Gauntlet, DAOplomats, PGov
  • Raising the borrow collateral factor to 80% restores account health headroom needed for existing borrowers to repay debt incrementally and withdraw collateral progressively, making orderly unwind practical given that rsETH redemption through Kelp takes roughly three weeks and full atomic repayment is infeasible.— Gauntlet, PGov
  • The proposed 80% borrow collateral factor preserves a conservative posture by remaining below the original 88% level while still solving the mechanical constraint that currently forces a disorderly liquidation or indefinite lock for legacy borrowers.— Gauntlet, PGov

Arguments against

None surfaced.

Unresolved concerns

  • Whether Gauntlet has a monitoring tripwire or timeline milestone at which the 80% borrow collateral factor would be stepped back down once positions have unwound to a threshold level, or if 0% remains the expected durable resting state once the legacy book clears.— PGov

Notable participants

  • GauntletProposal originator; risk management team recommending the parameter change to enable orderly rsETH offboarding.
  • DAOplomatsEarly supporter citing the supply cap constraint as sufficient to prevent new risk entry.
  • PGovThoughtful endorser who articulated the asymmetry between blocking new borrowing and enabling legacy unwinding, and raised the unresolved question of exit criteria.
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
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