Compound

Simple Summary

A proposal to adjust five (5) risk parameters (collateral factor & borrow cap) across five (5) Compound V2 assets.

The community has aligned on a risk off framework.

Background

Gauntlet’s simulation engine has ingested the latest market and liquidity data. These recommendations are Gauntlet’s regular parameter recommendations as part of Dynamic Risk Parameters and align with the Moderate risk level chosen by the Compound community.

Full proposal and forum discussion

Specification

The CF decreases result in ~$1.4k in supply of projected risk-off liquidations in dust accounts. We will continue to run liquidation analyses throughout the proposal to measure whether the CF decreases will result in any risk-off liquidations.

Accounts At Risk for Liquidation
0X19F91BC93551F09DAF556258CBF335EB0AB7C709
0X2565F8E0B33F2D3BB1C0E2DD5FBB972DF48654C8
0X46BA9970E469A212084527AEB321C3F3ED53D9BE
0X46CDB38A6EB7C1C42A452A4C107EBD79BCB2A7AF
0X70D8E4AB175DFE0EAB4E9A7F33E0A2D19F44001E
0XA8672C3CEF0DCE305102F20AC820C921C91FF7E2
0XB92BC5A49D57F43A7DA0728BBFCB649EB839067E
0XBB3F49E5FDC0FDCE8A3E97C563C7C6E9188FC0A4
0XDEF1138F24960F1B048BB2EC16D9E3F5EC9735C2
0XFB5CAAE76AF8D3CE730F3D62C6442744853D43EF

Dashboard

Gauntlet has launched the Compound Risk Dashboard. The community should use the Dashboard to understand better 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.

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.