Simple Summary

Gauntlet recommends the following risk parameter updates for the Ethereum v3 USDC comet:

UNI

• Increase UNI Liquidation Penalty from 7% to 15%
• Increase UNI Supply Cap from 6,000,000 to 8,000,000

WBTC

• Increase WBTC Liquidation Factor from 77% to 85%.
• Increase WBTC Collateral Factor from 70% to 80%.

For more details, see the full forum post here.

Motivation

Gauntlet recommends increasing UNI’s supply cap and liquidation penalty and WBTC’s liquidation factor to balance risk management and capital efficiency.

Full proposal and forum discussion

Specification

This proposal updates the relevant parameters in the Ethereum v3 USDC comet

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