Simple Summary

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

• Increase GMX Supply Cap from 50,000 to 100,000
• Increase GMX Liquidation Factor from 45% to 60%
• Increase GMX Collateral Factor from 40% to 50%
• Increase ARB Supply Cap from 8,000,000 to 16,000,000
• Increase ARB Liquidation Factor from 60% to 80%
• Increase ARB Collateral Factor from 55% to 70%
• Increase ARB Liquidation Penalty from 7% to 10%
• Decrease Store Front Price Factor from 80% to 60%
• Increase WETH Supply Cap from 5,000 to 10,000

Gauntlet recommends the following risk parameter updates for the Arbitrum v3 USDC.e comet:

• Increase ARB Liquidation Penalty from 7% to 10%
• Decrease Comet Market Store Price Factor from 80% to 60%

Gauntlet recommends the following risk parameter update for the Base v3 USDbC comet:

• Increase cbETH Liquidation Penalty from 7% to 15%

For more details, see the full forum post here.

Motivation

Gauntlet recommends parameter updates for the Collateral Factor, Liquidation Factor, Supply Cap, Liquidation Penalty, and Store Front Price Factor across three Comets to mitigate risk and increase capital efficiency.

Full proposal and forum discussion

Specification

This proposal updates the relevant parameters in the Arbitrum v3 USDC Native, Arbitrum v3 USDC.e, and Base v3 USDbC comets

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.