Simple Summary

Gauntlet recommends the following parameter updates for the Arbitrum USDC comet:

Risk Recommendations

Parameter	Current Value	Recommended Value
WETH Supply Cap	10,000	40,000
WETH Liquidation Factor	85%	90%
WETH Collateral Factor	78%	83%
WBTC Supply Cap	1,200	2,000

Interest Rate Curve Recommendations

Parameter	Current Value	Recommended Value
Annual Borrow Interest Rate Base	.015	0.0136
Annual Borrow Interest Rate Slope Low	.0833	0.0626
Borrow Kink	0.9	0.9
Annual Borrow Interest Rate Slope High	4.3	4.3
Annual Supply Interest Rate Base	0	0
Annual Supply Interest Rate Slope Low	.075	0.062
Supply Kink	0.9	0.9
Annual Supply Interest Rate Slope High	3.6	3.94

COMP Distribution Recommendations

Parameter	Current Value	Recommended Value
Daily COMP Supply	17	17
Daily COMP Borrow	8	50

Motivation

Gauntlet recommends updating the risk, incentive, and interest rate curve parameters in the Arbitrum USDC comet to further incentivize growth at higher utilization. Full proposal and forum discussion

Specification

The proposal updates the parameters 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.