Simple Summary

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

• Decrease WBTC Supply Cap from 1500 WBTC to 750 WBTC
• Decrease WETH Supply Cap from 20000 WETH to 2500 WETH
• Decrease WMATIC Supply Cap from 20M to 8M WMATIC
• Decrease MaticX Supply Cap from 6M to 2M MaticX
• Decrease Daily Comp Supply Rewards from 16 COMP to 8
• Decrease Daily Comp Borrow Rewards from 7 COMP to 3

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

• Increase wstETH Supply Cap from 50 to 250
• Increase WETH Supply Cap from 300 to 2000

Gauntlet recommends adjusting the Scroll USDC IR curve:

Parameter	Current	Recommended
Annual Borrow Interest Rate Base	.015	.015
Annual Borrow Interest Rate Slope Low	0.053	0.05
Borrow Kink	0.85	0.85
Annual Borrow Interest Rate Slope High	1.80	1.80
Annual Supply Interest Rate Base	0	0
Annual Supply Interest Rate Slope Low	0.048	0.036
Supply Kink	0.85	0.85
Annual Supply Interest Rate Slope High	1.6	1.6

Motivation

Gauntlet recommends adjusting Polygon USDC.e Comet’s supply caps to risk off under utilized caps and reducing incentives to account for the higher costs per USDC.e within the protocol. Full proposal and forum discussion

Gauntlet recommends adjusting the Scroll USDC Comet’s supply cap parameters to increase capital efficiency and adjust IR curves to encourage increased borrowing while also decreasing the negative reserve factor. Full proposal and forum discussion

Specification

The proposal updates the Supply Cap, borrow/supply per year interest rate low slope, Base Tracking Borrow Speed,and Base Tracking Supply Speed 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.