Summary

Gauntlet recommends the following risk recommendations to the protocol:

• Decrease USDC Ethereum Comet’s LINK Supply Cap from 4,000,000 to 1,000,000
• Decrease USDT Ethereum Comet’s LINK Supply Cap from 2,000,000 to 500,000
• Decrease USDT Ethereum Comet’s UNI Supply Cap from 3,000,000 to 1,300,000

• Decrease USDC Ethereum Comet’s LINK Liquidation Factor from 85% to 79%
• Decrease USDC Ethereum Comet’s LINK Collateral Factor from 79% to 73%
• Increase USDC Ethereum Comet’s LINK Liquidation Penalty from 7% to 17%

• Decrease USDT Ethereum Comet’s LINK Liquidation Factor from 85% to 79%
• Decrease USDT Ethereum Comet’s LINK Collateral Factor from 79% to 73%
• Increase USDT Ethereum Comet’s LINK Liquidation Penalty from 7% to 17%

• Decrease USDC Ethereum Comet’s UNI Liquidation Factor from 79% to 74%
• Decrease USDC Ethereum Comet’s UNI Collateral Factor from 73% to 68%

• Decrease USDT Ethereum Comet’s UNI Liquidation Factor from 81% to 74%
• Decrease USDT Ethereum Comet’s UNI Collateral Factor from 75% to 68%
• Increase USDT Ethereum Comet’s UNI LP from 15% to 17%

Motivation

This recommendation aims to review and adjust risk parameters for tail-risk assets across Comets. This part 1 of the proposal, part 2 will incorporate recommendations for USDT Comets on Ethereum.

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