[Gauntlet] - IR Curve and Incentive Recommendations for Stablecoin and WETH Comets - Part 6 & Cap recommendations
Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase USDC Mainnet cbBTC supply cap from 650 to 900
- Increase USDT Mainnet cbBTC supply cap from 93 to 500
- Increase USDT Mainnet sFRAX supply cap from 20,000,000 to 30,000,000
- Increase USDT Mainnet wstETH supply cap from 45,000 to 60,000
Along with the above Gauntlet recommends updating the interest rate curves as well as COMP rewards for WETH and Stablecoin Comets. This proposal is Part 6 of the overarching recommendations to be implemented. In this proposal we specifically target Base WETH and Optimism WETH comet’s IR curves.
WETH Comets
The recommended curves are for the following comets:
| Comet |
|---|
| Ethereum WETH |
| Arbitrum WETH |
| Base WETH |
| Optimism WETH |
| Scroll WETH |
| Parameter | Current Value | Recommended Value |
|---|---|---|
| Annual Borrow Interest Rate Base | 0.01 | 0.01 |
| Annual Borrow Interest Rate Slope Low | 0.0145 | 0.0155 |
| Borrow Kink | 0.9 | 0.9 |
| Annual Borrow Interest Rate Slope High | 1.5 | 1.26 |
| Annual Supply Interest Rate Base | 0 | 0 |
| Annual Supply Interest Rate Slope Low | 0.0165 | 0.0216 |
| Supply Kink | 0.9 | 0.9 |
| Annual Supply Interest Rate Slope High | 1.2 | 1.125 |
Motivation
This recommendation aims to increase supply caps for various assets across multiple Comets. Gauntlet recommends to increase supply caps to increase capital efficiency within the Comets.
Full proposal and forum discussions can be found in the following posts.
- Jan 4
- Gauntlet recommends updating the interest rate curve parameters across all WETH and Stablecoin comets to align with market demand. See the the full proposal and forum discussion for more details.
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
| Voter | Cast Power | Vote & Rationale |
|---|---|---|
 0x66cD...B765F9 | 80,047 | FOR |
 Wintermute Governance | 80,003 | FOR |
 0x2B38...77bf33 | 80,001 | FOR |
 FranklinDAO (Prev. Penn Blockchain) | 80,001 | FOR |
 0x3FB1...2d4C8A | 80,000 | FOR |
VOTE POWER
Proposal Status
- Wed January 08 2025, 07:36 pmVoting Period Starts
- Sat January 11 2025, 01:40 pmEnd Voting Period
- Sat January 11 2025, 01:41 pmQueue Proposal
- Mon January 13 2025, 01:43 pmExecute Proposal
Current Results
1-FOR
760,374.56
2-AGAINST
N/A Tokens
3-ABSTAIN
N/A Tokens