[ARFC] Gauntlet Interest Rate Recommendation for WETH
Summary
A proposal to make parameter changes on Ethereum v3 and v2, Optimism v3, Arbitrum v3, Polygon v3. For more details, see the full forum post here.
Motivation
Gauntlet’s analysis has identified opportunities to adjust interest rate parameters for WETH on Ethereum v3, Optimism v3, Arbitrum v3, Polygon v3. This will help to facilitate more Emode borrowing against LST collateral, which may
- drive additional revenue to Aave.
- adjust current risk profile for LST to depend less on onchain liquidity, which has been steadily declining over the past few months. This may be adding risk to the current borrow composition against LST collateral.
Specification
| Option | Description | Recommendation |
|---|---|---|
| 1 | Lower slope 1 below staking yield | Lower slope 1 on all v3 to 3.3% |
| 2 | Match v3 Ethereum | Remove base rate of 1% on all v3, excl Ethereum v3 |
| 3 | Not recommended | No change |
Disclaimer: Gauntlet reserves the right to not move forward with any parameter changes recommended in Snapshot polls, if market conditions change meaningfully.
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.
| Voter | Cast Power | Vote & Rationale |
|---|---|---|
 FranklinDAO (Prev. Penn Blockchain) | 107,209 | Option 1 |
 0x329c...543eD4 | 106,442 | No change |
 0xB83b...Fbcf5C | 84,573 | Option 1 |
 0x62a4...96816a | 81,484 | Option 1 |
 0x13BD...138548 | 80,424 | Option 2 |
VOTE POWER
Proposal Status
- Wed September 13 2023, 01:40 pmVoting Period Starts
- Sat September 16 2023, 01:40 pmEnd Voting Period
Current Results
1-Option 1
476,793.458
2-No change
158,680.861
3-Option 2
80,429.968