Summary

Gauntlet recommends the following incentive changes

Comet	Current Supply Rewards	Recommended Supply Rewards	Current Borrow Rewards	Recommended Borrow Rewards
WETH	70	35	20	No Change
USDC	151	70	71	No Change

Along with the above Gauntlet recommends the following supply cap changes:

• Increase USDT Arbitrum wstETH Supply Cap from 5,000 to 10,000
• Increase USDC Arbitrum wstETH Supply Cap from 1,500 to 5,000
• Increase WETH BASE ezETH Supply Cap from 500 to 1,500
• Increase WETH BASE ezETH Collateral Factor from 80% to 88%
• Increase WETH BASE ezETH Liquidation Factor from 85% to 91%
• Decrease WETH BASE ezETH Liquidation Penalty from 10% to 6%
• Increase WETH ARB rsETH Collateral Factor from 80% to 88%
• Increase WETH ARB rsETH Liquidation Factor from 85% to 91%
• Decrease WETH ARB rsETH Liquidation Penalty from 10% to 4%
• Increase WETH ARB weETH Collateral Factor from 85% to 90%
• Increase WETH ARB weETH Liquidation Factor from 90% to 93%
• Decrease WETH ARB weETH Liquidation Penalty from 5% to 4%

Motivation

• Gauntlet is recommending reduction of incentives of Mainnet Comets to follwoing feedback from community and improve “net profitability” of Comets w/o negatively impacting APY competitivenes. Full proposal and forum discussions can be found here.
• Gauntlet recommends increasing supply cap for 3 LRT/LST assets to improve capital efficiency. Full proposal and forum discussions can be found here.
• Following the implementation of Exchange Rate Oracles, Gauntlet recommends adjusting the risk recommendations for the following LRTs to improve captial efficiency. Full proposal and forum discussions can be found here.

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.