Compound

Simple Summary

A proposal from Gauntlet to adjust five Interest Rate (IR) Curve parameters and one risk parameter in the Base WETH comet.

Gauntlet recommends the following IR Curve updates:

• Decrease Annual Borrow Interest Rate Base from 0.0099 to 0.005
• Decrease Annual Borrow Interest Rate Slope Low from 0.037 to 0.035
• Increase Annual Borrow Interest Rate Slope High from 0.5172 to 1.0
• Decrease Annual Supply Interest Rate Slope Low from 0.0284 to 0.025
• Increase Annual Supply Interest Rate Slope High from 0.6067 to 1.0

Gauntlet recommends the following risk parameter update:

• Increase baseBorrowMin from 1e-18 to 1e-6

For more details, see the full forum post here.

Motivation

Gauntlet recommends updating the IR curve to incentivize higher utilization and increased TVL in the Base v3 WETH comet. Gauntlet recommends updating the baseBorrowMin to bring it in line with the values set on Ethereum.

Full proposal and forum discussion

Specification

The proposal updates the IR curve parameters and baseBorrowMin by using the respective methods on 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.