Summary

Risk Recommendations

Comet	Parameter	Current Value	Recommend Value
Polygon USDT	WBTC Supply Cap	90	180
BASE USDC	WETH Collateral Factor	80%	85%
BASE USDC	cbETH Collateral Factor	75%	80%
BASE USDC	cbETH Liquidation Factor	80%	85%
BASE USDC	cbETH Liquidation Penalty	15%	10%
ETH WETH	cbETH Supply Cap	40,000	10,000
ETH WETH	ezETH Supply Cap	2,900	8,000
ARB USDT	WBTC Supply Cap	250	1,200
ARB USDT	WETH Collateral Factor	78%	85%
ARB USDT	WETH Liquidation Factor	85%	90%
ARB USDT	WETH Supply Cap	7,500	20,000
ARB USDT	wstETH Collateral Factor	70%	80%
ARB USDT	wstETH Liquidation Factor	80%	85%
ARB USDT	wstETH Supply Cap	1,500	5,000
ARB WETH	WBTC Supply Cap	300	1,200
ARB WETH	rETH Supply Cap	800	4500
ARB WETH	weETH Collateral Factor	82%	85%
ARB WETH	weETH Liquidation Factor	87%	90%
ARB WETH	weETH Supply Cap	550	6,000
ARB WETH	weETH Liquidation Penalty	8%	5%
ARB WETH	wstETH Supply Cap	2,000	10,000

Incentive Recommendations

Comet	Parameter	Current Value	Recommend Value
BASE USDC	Daily Borrow Rewards	8	5
BASE USDC	Daily Supply Rewards	20	13
ARB USDT	Daily COMP Borrow	10	30
ARB WETH	Daily COMP Borrow	4	15

IR Recommendations for Arb USDT, Polygon USDT, and BASE USDC

Parameter	Recommended Value
Annual Borrow Interest Rate Base	.015
Annual Borrow Interest Rate Slope Low	.05
Borrow Kink	.9
Annual Borrow Interest Rate Slope High	4.0
Annual Supply Interest Rate Base	0
Annual Supply Interest Rate Slope Low	.052
Supply Kink	.9
Annual Supply Interest Rate Slope High	3.6

Motivation

Gauntlet recommends these parameter updates to improve capital efficiency within the Comets. The IR recommendations are being proposed for all stablecoins in order to incentivize growth and increase utilization. The risk and rewards recommendations for ARB Comets are meant to improve collateral liquidity and capture incentivized growth. Full proposal and forum discussions can be found at the following links:

• [Gauntlet] Arbitrum USDT/WETH Comet - Risk & Incentive Recommendations (7/19/2024)
• [Gauntlet] BASE USDC Comet Risk and IO Recommendations
• [Gauntlet] Polygon USDT Comet Risk Recommendations
• [Gauntlet] Ethereum WETH Comet Risk Recommendations
• [Gauntlet] Interest Rate Curve Recommendations in Stablecoin Comets (7/19/24)

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.