Simple Summary

A proposal from Gauntlet to adjust 7 IR Curve parameters.

Gauntlet recommends the following changes to the Ethereum v3 USDC IR curve:

• Increase Annual Supply Interest Rate Slope Low from 0.0325 to 0.034
• Increase Supply Kink from 80% to 95%
• Increase Annual Supply Interest Rate Slope High from 0.4 to 0.76
• Decrease Annual Borrow Interest Rate Base from 0.015 to 0.01
• Decrease Annual Borrow Interest Rate Slope Low from 0.035 to 0.0333
• Increase Borrow Kink from 80% to 90%
• Decrease Annual Borrow Interest Rate Slope High from 0.25 to 0

For more details, see the full forum post here.

Motivation

The proposed IR curve attempts to drive growth and migration as follows:

• Flatline Borrow APR past the borrow kink
• Adjust borrow/supply kinks & slopes to incentivize efficient and appealing equilibrium APRs

Full proposal and forum discussion

Specification

The proposal implements the above changes on the cUSDCv3 Ethereum Comet using the Configurator.

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.