Simple Summary

The original proposal was approved but contained an error that prevented successful execution on Base. This issue has been corrected in this resubmission.

Risk Parameters

A proposal to adjust 5 risk parameters:

Risk Parameter	Current Value	Recommended Value
ETH Collateral Factor	75%	78%
cbETH Collateral Factor	73%	75%
DAI Collateral Factors	80%	82%

IR Parameters

A proposal to adjust 3 IR parameters for 4 assets:

DAI/USDC/USDbC IR Parameters	Current	Recommended
BASE	0	0
Kink	0.8	0.8
Multiplier	0.05	0.045
Jump Multiplier	2.5	2.5

Gauntlet recommends to increase the kink to 80% and Jump Multiplier to 4.8 for the WETH IR curve to improve capital efficency of WETH:

WETH IR Parameters	Current	Recommended
BASE	0.01	0.01
Kink	0.75	0.8
Multiplier	0.04	0.04
Jump Multiplier	3.8	4.8

Here is the forum post with further analysis and supporting data for our recommendations.

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