# USDT Reserve Reallocation
## Simple Summary
A proposal to transfer 5M USDT from Compound V2 reserves to Compound V3 Comet reserves.
## Motivation
Full proposals and forum discussions can be found in this [forum post](https://www.comp.xyz/t/gauntlet-pausing-ethereum-usdc-usds-and-usdt-comets/7326/22?u=gauntlet).
## Specification
By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.xyz/tos
addAsset((address,uint256,bool,address))addAsset((address,uint256,bool,address))setGuardianAndFeeRecipient(address,address)setHooks(address)# Aera <> Compound Extension Part 2
## Simple Summary
This proposal is Part 2 of 2 for Aera <> Compound Extension and follows [Part 1](https://compound.finance/governance/proposals/353). This proposal implements the operational steps required to start yield generation.
For more details, please refer to the [Forum Post](https://www.comp.xyz/t/aera-for-compound-extension/5852).
## Specification
1. Add [cUSDCv3 C3PO](https://etherscan.io/address/0x14A2fd4B9e908B00Db60Dbf375Beb9Ec9B71565a)
2. Add [cWETHv3 C3PO](https://etherscan.io/address/0x4831bca878af802697613397e523b73efbfaab4f)
3. Change the guardian on the Compound Vendor Payments Vault to use Gauntlet's proxy contract. This is the same guardian that is used for the Reserves vault.
4. Change the hooks contract on Compound Vendor Payments Vault. This will swap out the existing Hooks module on the Compound Vendor Payments Vault to add more functionality. Specifically we are updating the MilkmanRouter to our latest version, adding Odos (a DEX aggregator) for better execution, and clearing out hooks that are no longer needed (the current MilkmanRouter, Bebop hooks, as well as any transfer hooks).
_grantComp(address,uint256)_grantComp(address,uint256)approve(address,uint256)outboundTransferCustomRefund(address,address,address,uint256,uint256,uint256,bytes)sendMessage(address,bytes,uint32)_grantComp(address,uint256)approve(address,uint256)depositERC20To(address,address,address,uint256,uint32,bytes)setBaseTrackingBorrowSpeed(address,uint64)deployAndUpgradeTo(address,address)# [Gauntlet] - Incentive Recommendations and Rewards Top Up (2024-10-24)
Gauntlet recommends the following incentive recommendations
| Comet | Current COMP Supply Rewards | Recommended COMP Supply Rewards | Current COMP Borrow Rewards | Recommended COMP Borrow Rewards |
| -----| -------| --------| -------|---------|
| Ethereum WETH | 35 | No Change | 20 | 15 |
| Arbitrum WETH | 6 | No Change | 15 | 10 |
| Base WETH | 6 | No Change | 2 | 1 |
Along with topping up COMP to the reward contracts for the following chains:
| Chain | Reward Amount |
|--------------|---------------|
| Ethereum | 28,400 |
| Optimism | 2,400 |
| Arbitrum | 11,700 |
For more details please see the full forum posts below:
- [[Gauntlet] - WETH Comet IR and Incentive Recommendations (2024-09-27)](https://www.comp.xyz/t/gauntlet-weth-comet-ir-and-incentive-recommendations-2024-09-27/5789/1)
- [[Gauntlet] Rewards Contract Top-Up for Ethereum, Arbitrum and Optimism (10/4/24) ](https://www.comp.xyz/t/gauntlet-rewards-contract-top-up-for-ethereum-arbitrum-and-optimism-10-4-24/5836)
***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.***
sendMessage(address,bytes,uint32)createRetryableTicket(address,uint256,uint256,address,address,uint256,uint256,bytes)sendMessage(address,bytes,uint32)updateAssetSupplyCap(address,address,uint128)updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)# [Gauntlet] Supply Cap Recommendations - Part 1 (10/24)
# Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase Optimism V3 WETH Comet’s weETH Supply Cap from 400 to 600.
- Increase Arbitrum USDC Comet's ezETH supply cap from 500 to 1,400
- Increase Arbitrum V3 WETH Comet’s ezETH Supply Cap from 6400 to 10240.
- Increase Base V3 WETH Comet’s ezETH Supply Cap from 2000 to 3,200.
- Increase Optimism V3 WETH Comet's ezETH supply cap from 2,400 to 3,200
# 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 October posts.
* [Oct 21 ](https://www.comp.xyz/t/gauntlet-supply-cap-recommendation-proposals/5886?u=gauntlet)
* [Oct 22 ](https://www.comp.xyz/t/gauntlet-supply-cap-recommendation-proposals/5886/2?u=gauntlet)
* [Oct 28 ](https://www.comp.xyz/t/gauntlet-supply-cap-recommendation-proposals/5886/3?u=gauntlet)
# 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***
_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setReserveFactor(uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)# [Gauntlet] Compound v2 Deprecation (10/07/2024)
# Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Decrease **AAVE Collateral Factor** from 18% to **8%**
- Decrease **BAT Collateral Factor** from 35% to **34%**
- Decrease **LINK Collateral Factor** from 28% to **26%**
- Decrease **MKR Collateral Factor** from 23% to **18%**
- Decrease **SUSHI Collateral Factor** from 17% to **12%**
- Decrease **UNI Collateral Factor** from 50% to **40%**
- Decrease **YFI Collateral Factor** from 20% to **10%**
- Decrease **ZRX Collateral Factor** from 10% to **0%**
- Decrease for **WBTC Collateral Factor** from 70% to **69%**
- Increase for **WBTC Reserve Factor** from 20% to **30%**
# Motivation
This recommendation aims to proceed with Compound v2 comet deprecation.
Full proposal and forum discussions can be found [here](https://www.comp.xyz/t/gauntlet-compound-v2-deprecation-10-07-2024/5850)
# 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***
_grantComp(address,uint256)_grantComp(address,uint256)approve(address,uint256)outboundTransferCustomRefund(address,address,address,uint256,uint256,uint256,bytes)sendMessage(address,bytes,uint32)_grantComp(address,uint256)approve(address,uint256)depositERC20To(address,address,address,uint256,uint32,bytes)setBaseTrackingBorrowSpeed(address,uint64)deployAndUpgradeTo(address,address)# [Gauntlet] - Incentive Recommendations and Rewards Top Up (2024-10-8
Gauntlet recommends the following incentive recommendations
| Comet | Current COMP Supply Rewards | Recommended COMP Supply Rewards | Current COMP Borrow Rewards | Recommended COMP Borrow Rewards |
| -----| -------| --------| -------|---------|
| Ethereum WETH | 35 | No Change | 20 | 15 |
| Arbitrum WETH | 6 | No Change | 15 | 10 |
| Base WETH | 6 | No Change | 2 | 1 |
Along with topping up COMP to the reward contracts for the following chains:
| Chain | Reward Amount |
|--------------|---------------|
| Ethereum | 28,400 |
| Optimism | 2,400 |
| Arbitrum | 11,700 |
For more details please see the full forum posts below:
- [[Gauntlet] - WETH Comet IR and Incentive Recommendations (2024-09-27)](https://www.comp.xyz/t/gauntlet-weth-comet-ir-and-incentive-recommendations-2024-09-27/5789/1)
- [[Gauntlet] Rewards Contract Top-Up for Ethereum, Arbitrum and Optimism (10/4/24) ](https://www.comp.xyz/t/gauntlet-rewards-contract-top-up-for-ethereum-arbitrum-and-optimism-10-4-24/5836)
***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.***
updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)updateAssetSupplyCap(address,address,uint128)updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)sendMessageToChild(address,bytes)sendMessage(address,bytes,uint32)createRetryableTicket(address,uint256,uint256,address,address,uint256,uint256,bytes)updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)# [Gauntlet] - Supply Cap Recommendations (2024-09-30)
# Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase USDT Mainnet wstETH supply cap from 22,000 to 28,000
- Increase WETH Mainnet ezETH supply cap from 18,000 to 25,000
- Decrease USDT Mainnet WBTC supply cap from 5,000 to 1,400
- Increase WETH Arbitrum ezETH supply cap from 4,000 to 6,400
- Increase USDT Arbitrum wstETH supply cap from 10,000 to 16,000
- Increase WETH Optimism ezETH supply cap from 750 to 1,200
- Increase USDT Polygon MaticX supply cap from 2,600,000 to 4,160,000
- Increase USDC Polygon MaticX supply cap from 2,000,000 to 3,200,000
# 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 [here](https://www.comp.xyz/t/gauntlet-supply-cap-recommendations-2024-09-30/5820)
# 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***
_grantComp(address,uint256)transfer(address,uint256)_grantComp(address,uint256)approve(address,uint256)deposit((address,uint256)[])execute((address,uint256,bytes))# Gauntlet <> Compound Renewal 2024
## Background
Since 2021, Gauntlet has worked with Compound to maximize the protocol’s capital efficiency given an acceptable level of market risk.
Full details of the proposal can be found [here](https://www.comp.xyz/t/gauntlet-compound-renewal-2024/5661).
## Proposal
A proposal to renew Gauntlet’s 12-month engagement with Compound on Risk Management, Yield Optimization, and Incentive Optimization. The scope of work includes continuous market risk management to maximize capital efficiency while minimizing the risk of insolvency and liquidations, aiming to create long-term sustainable growth. Incentive optimization aims to bootstrap liquidity, promote growth, and facilitate decentralized governance. Gauntlet renewed its partnership with Compound last year in September, which runs through September 27, 2024.
## Compensation Structure
The service fee structure will be a fixed annual fee of $2,300,000 using the COMP spot price.
A portion of our payment (30% of the $2.3M fee) will be transferred from Compound in a lump sum COMP transfer directly to Gauntlet. Gauntlet will refund the DAO up to 30% of our fee ($690K) in any event, as defined in the forum post.
The remaining 70% of the fee will be paid in USDC via the Vendor Payments Aera Vault, following the same process that the community has approved for [Open Zeppelin](https://compound.finance/governance/proposals/261). This proposal deposits $2.2M of COMP into Aera and calls createStream on a Llama Pay Router, via the Compound Aera vault’s execute function. The stream will pay out on a per-second basis over a year. $1.61M USDC over 31536000 seconds gives a rate of 0.05105276509 USDC/sec. The additional buffer can be reclaimed by Compound governance at any time.
Gauntlet will be able to withdraw the vested funds at any time.
More details can be found in the [forum post](https://www.comp.xyz/t/gauntlet-compound-renewal-2024/5661).
*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.*
updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)createRetryableTicket(address,uint256,uint256,address,address,uint256,uint256,bytes)updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)# [Gauntlet]- Supply Cap Recommendations (2024-08-20)
# Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase WETH Arbitrum Comet’s rsETH Supply Cap from 920 to 3,500
- Increase USDT Ethereum Comet’s wstETH Supply Cap from 9,000 to 15,000
# Motivation
This recommendation aims to increase supply caps for rsETH and wstETH on their respective Comets. Gauntlet recommends to increase supply caps to increase capital efficiency within the Comets.
Full proposal and forum discussions can be found [here](https://www.comp.xyz/t/gauntlet-supply-cap-recommendations-2024-08-19/5605).
# 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***
createRetryableTicket(address,uint256,uint256,address,address,uint256,uint256,bytes)setBaseTrackingSupplySpeed(address,uint64)setBaseTrackingBorrowSpeed(address,uint64)setBorrowKink(address,uint64)setBorrowPerYearInterestRateBase(address,uint64)setBorrowPerYearInterestRateSlopeLow(address,uint64)setBorrowPerYearInterestRateSlopeHigh(address,uint64)setSupplyKink(address,uint64)setSupplyPerYearInterestRateSlopeLow(address,uint64)setSupplyPerYearInterestRateSlopeHigh(address,uint64)deployAndUpgradeTo(address,address)# [Gauntlet] - Arbitrum USDT Risk and IO Recommendations (2024-08-20)
# Summary
Gauntlet recommends the following parameter changes to Arbitrum USDT Comet:
| Parameters | Current Value | Recommended Values |
| --- | --- | --- |
| Annual Borrow Interest Rate Base | .015 | .015 |
| Annual Borrow Interest Rate Slope Low | .05 | .05 |
| Borrow Kink | .9 | .85 |
| Annual Borrow Interest Rate Slope High | 4.0 | 3.5 |
| Annual Supply Interest Rate Base | 0 | 0 |
| Annual Supply Interest Rate Slope Low | .052 | .03 |
| Supply Kink | .9 | .85 |
| Annual Supply Interest Rate Slope High | 3.6 | 3.2 |
| Daily Borrow Rewards | 30 | 35 |
| Daily Supply Rewards | 12 | 7 |
# Motivation
This recommendation aims to mitigate further negative reserve growth while the LTIPP incentive program is active and improve utilization of USDT within the Comet.
Full proposal and forum discussions can be found [here](https://www.comp.xyz/t/gauntlet-arbitrum-usdt-risk-and-io-recommendations-2024-08-15/5599).
# 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***
setBaseTrackingSupplySpeed(address,uint64)deployAndUpgradeTo(address,address)setBaseTrackingSupplySpeed(address,uint64)deployAndUpgradeTo(address,address)createRetryableTicket(address,uint256,uint256,address,address,uint256,uint256,bytes)sendMessage(address,bytes,uint32)updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)updateAssetBorrowCollateralFactor(address,address,uint64)updateAssetLiquidateCollateralFactor(address,address,uint64)updateAssetLiquidationFactor(address,address,uint64)updateAssetBorrowCollateralFactor(address,address,uint64)updateAssetLiquidateCollateralFactor(address,address,uint64)updateAssetLiquidationFactor(address,address,uint64)deployAndUpgradeTo(address,address)updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)updateAssetBorrowCollateralFactor(address,address,uint64)updateAssetLiquidateCollateralFactor(address,address,uint64)updateAssetLiquidationFactor(address,address,uint64)updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)# [Gauntlet] - IO and Risk Recommendations for BASE, Mainnet, and Arbitrum (2024-08-12)
# 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](https://www.comp.xyz/t/request-for-comments-removing-comp-incentives-from-mainnet-markets/5419/4?u=gauntlet).
- Gauntlet recommends increasing supply cap for 3 LRT/LST assets to improve capital efficiency.
Full proposal and forum discussions can be found [here](https://www.comp.xyz/t/gauntlet-supply-cap-recommendations-2024-08-13/5589).
- 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](https://www.comp.xyz/t/gauntlet-lrt-recommendations-for-mainnet-base-arbitrum-weth-comets/5577).
# 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.***
updateAssetBorrowCollateralFactor(address,address,uint64)updateAssetLiquidateCollateralFactor(address,address,uint64)updateAssetLiquidationFactor(address,address,uint64)updateAssetBorrowCollateralFactor(address,address,uint64)updateAssetLiquidateCollateralFactor(address,address,uint64)updateAssetLiquidationFactor(address,address,uint64)updateAssetBorrowCollateralFactor(address,address,uint64)updateAssetLiquidateCollateralFactor(address,address,uint64)updateAssetLiquidationFactor(address,address,uint64)deployAndUpgradeTo(address,address)# [Gauntlet] Risk Recommendations for LRTs on WETH Comets
# Summary
Gauntlet recommends the following risk parameters for LRTs on Ethereum:
| Asset | Recommended CF | Recommended LF | Recommended LP |
| ----- | -------------- | -------------- | -------------- |
| weETH | 90% | 93% | 4% |
| rsETH | 88% | 91% | 4% |
| ezETH | 88% | 91% | 6% |
# Motivation
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](https://www.comp.xyz/t/gauntlet-lrt-recommendations-for-mainnet-base-arbitrum-weth-comets/5577).
# 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**
_setReserveFactor(uint256)_setCompSpeeds(address[],uint256[],uint256[])updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)createRetryableTicket(address,uint256,uint256,address,address,uint256,uint256,bytes)updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)# [Gauntlet] Risk and IO Parameter Recommendations - (2024-08-06)
## Summary
Gauntlet recommends the following parameter adjustments:
- Increase WETH Ethereum ezETH Supply Cap from 8,000 to 12,000
- Increase WETH Arbitrum weETH Supply Cap from 6,000 to 12,000
- Increase USDT Reserve Factor from 7.5% to 15%
- Reduce DAI Daily Supply Comp Reward from 25 to 0.
- Reduce DAI Daily Borrow Comp Reward from 25 to 0.
## Motivation
Gauntlet recommends updating the supply caps to incentivize further growth within respective Comets. The Reserve Factor and Comp reward adjustments will motivate v2 users to migrate to v3 markets.
For more details, see the full forum posts below:
[Compound v2 Deprecation Phase 13 (08/01/2024)](https://www.comp.xyz/t/compound-v2-deprecation-phase-13-08-01-2024/5516)
[[Gauntlet] Risk Recommendations (2024-08-06)](https://www.comp.xyz/t/gauntlet-risk-recommendations-2024-08-06/5530)
## 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.***
createRetryableTicket(address,uint256,uint256,address,address,uint256,uint256,bytes)withdrawReserves(address,uint256)withdrawReserves(address,uint256)withdrawReserves(address,uint256)withdrawReserves(address,uint256)deployAndUpgradeTo(address,address)# [Gauntlet] Arbitrum USDC Interest Rate Funds
## Summary
Gauntlet is proposing to return funds to eligible token holders whose wallets were impacted by the interest rate change resulting from the [governance proposal 226](https://compound.finance/governance/proposals/226) applied as of March 19, 2024. Impacted users had to follow these [instructions](https://www.comp.xyz/t/gauntlet-arbitrum-usdc-comet-interest-rate-curve-recommendations/5081/6?u=gauntlet) as provided in the forums and discord community channels in order to have funds returned.
The following users will receive funds from the Arbitrum USDC Comet reserves:
| User Address | Funds |
| --- | --- |
| 0x403d37c861fb54b8f37a3a1870abce335954840b | 13519 |
| 0x8d8bb7a2873f3514e9551c0c6f0d313f322a3619 | 24 |
| 0xe77454ab9ae886d8c1bbfcd9af1bb369eb27bd3e | 210 |
| 0xb56e5620a79cfe59af7c0fcae95aadbea8ac32a1 | 4170 |
## **Specification**
The proposal uses the **`withdrawReserves`** via the cUSDCv3 contract.
***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.***
sendMessage(address,uint256,bytes,uint256)updateAssetSupplyCap(address,address,uint128)updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)# [Gauntlet] Scroll Risk Recommendations
# Simple Summary
Gauntlet recommends the following risk parameter updates for the **Scroll v3 USDC comet**:
- Increase wstETH Supply Cap from 50 to 100
- Increase WETH Supply Cap from 300 to 600
## Motivation
Gauntlet recommends adjusting the risk parameters to increase capital efficiency within the Comet.
[Full proposal and forum discussion](https://www.comp.xyz/t/gauntlet-scroll-usdc-comet-risk-recommendations-2024-06-18/5353)
## Specification
The proposal updates the Supply Cap 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.***
setStoreFrontPriceFactor(address,uint64)deployAndUpgradeTo(address,address)sendMessage(address,bytes,uint32)setStoreFrontPriceFactor(address,uint64)deployAndUpgradeTo(address,address)# [Gauntlet] - BASE and Ethereum v3 WETH Comet Risk Recommendations on (2024-04-29)
# Simple Summary
Gauntlet Recommends to adjust the **Store Front Price Factor for both WETH Comets on BASE and Ethereum:**
- Decrease BASE WETH’s Store Front Price Factor from 100% to 70%.
- Decrease Ethereum WETH’s Store Front Price Factor from 100% to 70%.
# Motivation
Gauntlet recommends reducing the StoreFrontPriceFactors for WETH Comets to 70%. Decreasing the Store Front Price Factor provides further reserve buffer to protocol during liquidation events.
[Full proposal and forum discussion](https://www.comp.xyz/t/gauntlet-weth-comet-recommendations-on-base-ethereum-2024-04-10/5160)
# Specification
This proposal updates the `setStoreFrontPriceFactor` in the BASE and Ethereum v3 BASE Comet
*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.*
setBaseTrackingSupplySpeed(address,uint64)setBaseTrackingBorrowSpeed(address,uint64)deployAndUpgradeTo(address,address)sendMessage(address,bytes,uint32)setBaseTrackingSupplySpeed(address,uint64)setBaseTrackingBorrowSpeed(address,uint64)deployAndUpgradeTo(address,address)# [Gauntlet] BASE and Ethereum v3 WETH Comet IO Recommendations (2024-04-29)
# Simple Summary
Gauntlet recommends the following incentive adjustments to WETH Comets on Ethereum and Base:
|Comets|Daily COMP Supply Rewards (Tokens)|Recommended Daily COMP Supply Rewards (Tokens)|Daily COMP Borrow Rewards (Tokens)|Recommended Daily COMP Borrow Rewards (Tokens)|
|---|---|---|---|---|
|Compound v3 WETH (Ethereum)|70|70|0|20|
|Compound v3 WETH (BASE)|15|10|0|2|
# Motivation
Gauntlet recommends incentive adjustments to the WETH Comets in order to improve utilization of WETH within those Comets.
[Full proposal and forum discussion](https://www.comp.xyz/t/gauntlet-io-recommendations-for-weth-comets-on-base-and-eth-mainnet/5194)
# Specification
This proposal updates the `setBaseTrackingBorrowSpeed` and `setBaseTrackingSupplySpeed` in the BASE and Ethereum v3 BASE Comet
*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.*
createRetryableTicket(address,uint256,uint256,address,address,uint256,uint256,bytes)updateAssetSupplyCap(address,address,uint128)updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)# [Gauntlet] 2023-11-27: Arbitrum Native USDC - Risk Recommendations
## Simple Summary
A proposal from Gauntlet to adjust two risk parameters in the Arbitrum Native USDC comet.
Gauntlet recommends the following risk parameter changes:
* Increase ARB Supply Cap from 4M tokens ($4.10M) to 8M tokens ($8.20M)
* Increase WBTC Supply Cap from 600 tokens ($22.30M) to 1,200 tokens ($44.60M)
For more details, see the full forum post [here]( https://www.comp.xyz/t/gauntlet-arbitrum-native-usdc-risk-recommendations-11-22-23/4839 ).
## Motivation
These changes will decrease WBTC supply cap utilization from 92% to 46% and decrease ARB supply cap utilization from 100% to 50%, to allow further long-term protocol usage and growth.
[Full proposal and forum discussion](https://www.comp.xyz/t/gauntlet-arbitrum-native-usdc-risk-recommendations-11-22-23/4839)
## Specification
This proposal updates supply cap on V3 Arbitrum USDC Native market through `updateAssetSupplyCap` in 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.*
_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)# [Gauntlet] 2023-10-30: Compound v2 Deprecation (Phase 3)
## Simple Summary
A proposal from Gauntlet to adjust 7 Compound v2 risk parameters for Phase 3 of the Compound v2 Deprecation.
Gauntlet recommends the following changes:
* Decrease AAVE Collateral Factor from 68% to **63%**
* Decrease COMP Collateral Factor from 55% to **50%**
* Decrease LINK Collateral Factor from 74% to **69%**
* Decrease MKR Collateral Factor from 68% to **63%**
* Decrease SUSHI Collateral Factor from 62% to **57%**
* Decrease YFI Collateral Factor from 70% to **65%**
* Decrease ZRX Collateral Factor from 60% to **55%**
For more details, see the full forum post [here]( https://www.comp.xyz/t/gauntlet-compound-v2-deprecation-phase-3-10-27-23/4748 ).
## Motivation
In this [September 2022 snapshot vote](https://snapshot.org/#/comp-vote.eth/proposal/bafkreiar7qfbmmabclsogilncy542cyenehjulmdhhewuzojdooer4tnje), the community voted that each asset’s Collateral Factor may be reduced by an absolute percentage of up to 5%. After our analysis, Gauntlet recommends this max 5% decrease for each lowly supplied collateral asset in order to further deprecate the v2 market.
[Full proposal and forum discussion](https://www.comp.xyz/t/gauntlet-compound-v2-deprecation-phase-3-10-27-23/4748)
## Specification
The proposal updates the parameters using the `_setCollateralFactor` methods of the relevant cToken contracts.
*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.*
_setReserveFactor(uint256)_setCompSpeeds(address[],uint256[],uint256[])setBaseTrackingSupplySpeed(address,uint64)setBorrowKink(address,uint64)setBorrowPerYearInterestRateSlopeHigh(address,uint64)setSupplyKink(address,uint64)setSupplyPerYearInterestRateSlopeHigh(address,uint64)deployAndUpgradeTo(address,address)# [Gauntlet] 2023-09-11: Compound v2 Deprecation (Phase 1)
## Simple Summary
A proposal from Gauntlet to adjust 8 risk parameters, distribution rewards, and IR curve parameters across the v2 and Ethereum v3 USDC protocols for Phase 1 of the Compound v2 Deprecation.
Gauntlet recommends the following changes:
* Increase **v2 USDC Reserve Factor** from 15% to **30%**.
* Decrease **v2 USDC daily COMP supply distribution** from 66.20 to **0**.
* Decrease **v2 USDC daily COMP borrow distribution** from 91.20 to **0**.
* Increase **Ethereum v3 USDC COMP supply distribution** from 100 to **257.40**.
* Decrease **Ethereum v3 USDC Supply Kink** from 95% to **93%**.
* Decrease **Ethereum v3 USDC Borrow Kink** from 95% to **93%**.
* Increase **Ethereum v3 USDC Annual Supply Interest Rate Slope High** from 0.76 to **1.5**.
* Increase **Ethereum v3 USDC Annual Borrow Interest Rate Slope High** from 0.567 to **1.5**.
For more details, see the full forum post [here]( https://www.comp.xyz/t/gauntlet-compound-v2-deprecation-strategy/4596 ).
## Motivation
The community has expressed interest in deprecating the v2 market. Recent Gauntlet recommendations have been aligned with this strategic initiative, with the execution of pausing of supply for v2 tail assets.
Currently there is a [poll](https://www.comp.xyz/t/gauntlet-compound-v2-deprecation-strategy/4596/9) to deteremine whether the community would like to deprecate USDT and/or DAI markets in v2. In the meantime, Gauntlet recommends the proposed v2 USDC deprecation changes in Phase 1 with the following goals in mind:
* Ensure enough borrowable USDC exists in v3 so that v2 users can migrate
* Limit poor UX for v2 users
[Full proposal and forum discussion](https://www.comp.xyz/t/gauntlet-compound-v2-deprecation-strategy/4596)
## Specification
The proposal updates the parameters using:
* The `_setReserveFactor` method of the cUSDC contract.
* The `_setCompSpeeds` method of the Comptroller contract.
* The `setBaseTrackingSupplySpeed` method of the Ethereum v3 USDC Configurator contract.
* The `setBorrowKink` method of the Ethereum v3 USDC Configurator contract.
* The `setSupplyKink` method of the Ethereum v3 USDC Configurator contract.
* The `setSupplyPerYearInterestRateSlopeHigh` method of the Ethereum v3 USDC Configurator contract.
* The `setBorrowPerYearInterestRateSlopeHigh` method of the Ethereum v3 USDC Configurator contract.
*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.*
_setMintPaused(address,bool)_setMintPaused(address,bool)_setMintPaused(address,bool)_setMintPaused(address,bool)_setMintPaused(address,bool)# [Gauntlet] 2023-07-24 Pause supply for Compound v2 Tail Assets
## Simple Summary
A proposal from Gauntlet to adjust 5 parameters for 5 Compound v2 assets.
Gauntlet recommends pausing supply for the following collateral assets on Compound v2:
* cAAVE
* cCOMP
* cLINK
* cSUSHI
* cUNI
For more details, see the full forum post [here]( https://www.comp.xyz/t/gauntlet-recommendations-compound-v2-pausing-supply-for-caave-ccomp-clink-csushi-and-cuni-7-15-23/4485 ).
## Motivation
These collateral assets have empirically provided minimal reserves to the protocol, both in terms of users borrowing these assets and borrowing against these assets. They also expose the protocol to outsized tail risks in scenarios of market downturns, cToken/oracle price deviations, and price manipulation attacks, given lower liquidity in these tokens and the absence of supply caps in v2. Additionally, COMP, LINK, and UNI are listed as collateral assets in Ethereum Compound v3 USDC, which includes supply caps.
[Full proposal and forum discussion](https://www.comp.xyz/t/gauntlet-recommendations-compound-v2-pausing-supply-for-caave-ccomp-clink-csushi-and-cuni-7-15-23/4485)
## Specification
This proposal pauses supply of tokens through `_setMintPaused` in Comptroller.
*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.*
setBaseTrackingSupplySpeed(address,uint64)setBaseTrackingBorrowSpeed(address,uint64)setBorrowKink(address,uint64)setBorrowPerYearInterestRateSlopeHigh(address,uint64)deployAndUpgradeTo(address,address)# Gauntlet Recommendations: Ethereum Compound v3 USDC - Interest Rate Curve & Incentive Changes
## Simple Summary
A proposal from Gauntlet to adjust 2 Interest Rate Curve parameters and 2 COMP reward distributions in Ethereum Compound v3 USDC.
Gauntlet recommends the following changes to the Ethereum v3 USDC IR curve:
- Increase **Borrow Kink** from 90% to **95%**
- Increase **Annual Borrow Interest Rate Slope High** from 0 to **0.567**
Gauntlet recommends the following changes to Ethereum v3 USDC rewards:
- Decrease **daily USDC COMP borrow rewards** from 481.41 to **381.41** (~$22,800/day)
- Increase **daily USDC COMP supply rewards** from 0 to **100** (~$6,000/day)
For more details, see the full forum post [here](https://www.comp.xyz/t/gauntlet-recommendations-ethereum-compound-v3-usdc-ir-curve-incentive-changes-7-6-23/4472).
## Motivation
The proposed IR curve increases the Borrow Kink to 95% and re-introduces the positive Annual Borrow Interest Rate Slope High, at a milder level than was initially set when launching the comet. This change will eliminate reserve losses at high utilizations, and aims to increase liquidity for both USDC borrowers and suppliers.
This change will not affect borrow or supply APRs when utilization is ≤ 90%, and it will have minimal impact on borrow APR when the utilization rate is ≤ 95%.
[Full proposal and forum discussion](https://www.comp.xyz/t/gauntlet-recommendations-ethereum-compound-v3-usdc-ir-curve-incentive-changes-7-6-23/4472)
## Specification
The proposal updates the base tracking borrow and supply speeds, the borrow kink, and the borrow per year interest rate high slope 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.*
_setReserveFactor(uint256)_setCompSpeeds(address[],uint256[],uint256[])# Compound V2->V3 Migration Proposal Phase 4
### Simple Summary
Gauntlet provides this proposal for Phase 4 of the Compound V2 -> V3 Migration.
### Background
Of the two options proposed in the recently published Phase 4 migration post, the community has voted in favor of Option 1, whose plan is outlined below. See the [forum post](https://www.comp.xyz/t/compound-migration-proposal-phase-4-6-16-23-two-options/4396) for more detail.
* Increase v2 USDC Reserve Factor from 7.5% to 15%
* Decrease v2 daily USDC supply COMP rewards from 161.20 to 111.20 (-50)
* Decrease v2 daily USDC borrow COMP rewards from 161.20 to 111.20 (-50)
* Decrease v2 daily DAI supply COMP rewards from 161.20 to 111.20 (-50)
* Decrease v2 daily DAI borrow COMP rewards from 161.20 to 111.20 (-50)
### Specification
This proposal implements a number of changes using several different contracts:
* v2 daily COMP rewards are updated using `_setCompSpeeds` on the `Comptroller` contract
* v2 USDC Reserve Factor is updated using `_setReserveFactor` on the `cUSDC` contract
*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.*
approve(address,uint256)createStream(address,uint256,address,uint256,uint256)# Gauntlet <> Compound Incentive Optimization
## Background
Gauntlet first contributed to incentive optimization for Compound in January 2021 through [recalibrating COMP speeds](https://compound.finance/governance/proposals/35). While Gauntlet’s engagement with the DAO primarily touches [risk parameters](https://www.comp.xyz/t/gauntlet-compound-renewal/3541#:~:text=Gauntlet%20will%20not%20look%20to%20manage%20the%20following%20at%20the%20outset%3A%20enabling%20or%20disabling%20a%20currency%20for%20borrowing%2C%20optimizing%20COMP%20emissions), incentive management naturally overlaps. Recent examples of Gauntlet's work with Compound incentives include [Migration](https://compound.finance/governance/proposals/156) and adjusting [Polygon incentives](https://compound.finance/governance/proposals/161).
Full details of the proposal can be found [here](https://www.comp.xyz/t/gauntlet-compound-incentive-optimization/4267).
## Proposal
A proposal to formalize and expand Gauntlet’s existing work with Compound on continuous incentive optimization for Compound’s rewards.
As part of the engagement scope, Gauntlet will provide Compound with a quantitative framework to evaluate the success or failure of incentive optimization. Gauntlet will leverage its Incentive Optimization Platform to provide recommendations adjusting incentives across Compound V2 and Comet markets to drive sustainable, efficient growth.
The service fee structure is a $300K fixed fee, paid in $COMP tokens, as well as a [variable performance fee](https://www.comp.xyz/t/gauntlet-compound-incentive-optimization/4267#:~:text=in%20COMP%20tokens-,Performance%2DBased%20Fee%3A,-10%25%20of%20Improvements). This proposal only implements the $300K fixed fee portion.
[Full proposal and forum discussion](https://www.comp.xyz/t/gauntlet-compound-incentive-optimization/4267)
## Specification
The proposal creates a Sablier stream owned by governance to the beneficiary address `0xD20c9667bf0047F313228F9fE11F8b9F8Dc29bBa` for 7,989 COMP over a 365 day vesting duration as detailed above.
*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.*
# Interest Rate Curve Updates for Ethereum Compound v3 USDC
## Simple Summary
A proposal from Gauntlet to adjust 7 IR Curve parameters.
Gauntlet recommends the following changes to the Ethereum v3 USDC IR curve:
* Increase Annual Supply Interest Rate Slope Low from 0.0325 to 0.034
* Increase Supply Kink from 80% to 95%
* Increase Annual Supply Interest Rate Slope High from 0.4 to 0.76
* Decrease Annual Borrow Interest Rate Base from 0.015 to 0.01
* Decrease Annual Borrow Interest Rate Slope Low from 0.035 to 0.0333
* Increase Borrow Kink from 80% to 90%
* Decrease Annual Borrow Interest Rate Slope High from 0.25 to 0
For more details, see the full forum post [here](https://www.comp.xyz/t/ethereum-compound-v3-usdc-gauntlet-ir-curve-recommendations-5-16-23/4307).
## Motivation
The proposed IR curve attempts to drive growth and migration as follows:
* Flatline Borrow APR past the borrow kink
* Adjust borrow/supply kinks & slopes to incentivize efficient and appealing equilibrium APRs
[Full proposal and forum discussion](https://www.comp.xyz/t/ethereum-compound-v3-usdc-gauntlet-ir-curve-recommendations-5-16-23/4307)
## Specification
The proposal implements the above changes on the cUSDCv3 Ethereum Comet using 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.*
# Risk Parameter Updates for V2 and V3 WETH Comet
## Simple Summary
A proposal to adjust:
* one (1) risk parameter (collateral factor) across one (1) Compound V2 asset.
* one (1) parameter for one (1) Compound V3 WETH asset.
More details can be found in the below forum posts:
* [V2 Recommendation](https://www.comp.xyz/t/compound-v2-risk-parameter-updates-2023-03-01/4108)
* [WETH Comet Recommendation](https://www.comp.xyz/t/compound-v3-eth-comet-risk-parameter-updates-2023-03-02/4112)
## Specification
V2:
WETH Comet:
## Implementation
This proposal updates parameters on two different deployments of Compound.
The collateral factor of legacy cWBTC is updated using the `_setCollateralFactor` method on the `Comptroller`.
The cbETH supply cap is updated using the `updateAssetSupplyCap` with the WETH Comet on the `Configurator` contract.
*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.*
### Compound V2 -> V3 Migration Phase 1
## Simple Summary
Gauntlet provides this initial proposal for Compound V2 -> V3 Migration.
## Background
Following community feedback, please see below an initial migration plan to align with the community's strategic preference. See the [forum post](https://www.comp.xyz/t/cip-3-compound-v2-to-v3-migration/4046/7?u=pauljlei) for more detail.
- Decrease v2 daily USDC supply COMP rewards from 241.20 to 211.20 (-30)
- Decrease v2 daily USDC borrow COMP rewards from 241.20 to 211.20 (-30)
- Decrease v2 daily DAI supply COMP rewards from 241.20 to 211.20 (-30)
- Decrease v2 daily DAI borrow COMP rewards from 241.20 to 211.20 (-30)
- Increase v3 daily USDC borrow COMP rewards from 161.41 to 281.41 (+120)
- Increase v3 ETH supply cap from 150k to 350k
- Increase v3 WBTC supply cap from 6k to 12k
- Increase storefront price factor from 50% to 60%
## Specification
This proposal implements a number of changes using several different contracts:
- v2 daily COMP rewards are updated using `_setCompSpeeds` on the `Comptroller` contract
- v3 USDC daily COMP rewards are updated using `setBaseTrackingBorrowSpeed` on the `Configurator` contract
- v3 USDC supply caps are updated using `updateAssetSupplyCap` on the `Configurator` contract
- v3 USDC storefront price factor is updated using `setStoreFrontPriceFactor` on the `Configurator` contract
*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.*
# Risk Parameter Updates for 3 Compound V2 Assets
## Simple Summary
A proposal to adjust three (3) risk parameters (collateral factor & borrow cap) across three (3) Compound V2 assets.
The community has aligned on a [risk off framework](https://snapshot.org/#/comp-vote.eth/proposal/bafkreiar7qfbmmabclsogilncy542cyenehjulmdhhewuzojdooer4tnje).
## Background
Gauntlet's simulation engine has ingested the latest market and liquidity data. These recommendations are Gauntlet's regular parameter recommendations as part of [Dynamic Risk Parameters](https://www.comp.xyz/t/dynamic-risk-parameters/2223/16).
[Full proposal and forum discussion](https://www.comp.xyz/t/compound-v2-risk-parameter-updates-2023-01-25/4001)
## Motivation and Specification
This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.
Our parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Our parameter recommendations seek to optimize for this objective function. For more details, please see [Gauntlet's Parameter Recommendation Methodology](https://medium.com/gauntlet-networks/gauntlets-parameter-recommendation-methodology-8591478a0c1c) and [Gauntlet's Model Methodology](https://medium.com/gauntlet-networks/gauntlets-model-methodology-ea150ff0bafd).
## Dashboard
Gauntlet has launched the [Compound Risk Dashboard](https://gov.gauntlet.network/compound). The community should use the Dashboard to understand better the updated parameter suggestions and general market risk in Compound.
Value at Risk represents the 95th percentile **insolvency value** that occurs from simulations we run over a range of volatilities to approximate a tail event.
Liquidations at Risk represents the 95th percentile **liquidation volume** that occurs from simulations we run over a range of volatilities to approximate a tail event.
These parameter changes decrease borrow usage by 5 basis points, decrease VaR by 15.3%, and decrease LaR by $0.96M.
## Specification
The proposal uses the `Configurator` contract to update the asset parameters listed above using the `_setCollateralFactor` and `_setMarketBorrowCaps` methods.
*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.*
# Risk Parameter Updates for 1 Collateral Asset on the Comet USDC Market
## Simple Summary
Increase the supply cap of COMP on the Comet USDC market from 600,000 COMP to 900,000 COMP.
## Motivation
Supply caps protect against price manipulation attacks (among other risks) on illiquid tokens that involve supplying the manipulatable token as collateral. In this framework, it is prudent to have tighter supply caps for less liquid tokens. On the other hand, as the use case for v3 grows, the community may wish to increase supply caps to accommodate greater usage. Current market data, including COMP’s +2% market depth at $1.7M, support an increase to the supply cap to allow for organic growth in the market without adding outsized market risk. Should the new supply cap get hit, the current liquidation bonus setting is likely to absorb the expected increase in VaR (1.5x), given the +2% market depth. Gauntlet recommends increasing the COMP supply cap to 900,000.
In the meantime, Gauntlet is continuing to formulate a formal borrow and supply cap process for Compound V3 to streamline these cap adjustments.
## Specification
The proposal uses the `Configurator` contract to update the asset parameters listed above for `cUSDCv3` using the `updateAssetSupplyCap` method and then upgrades `cUSDCv3` to use the newly configured `Comet`.
*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.*
# Risk Parameter Updates for 2 Assets on USDC Comet Market
## Simple Summary
A proposal to adjust one (1) risk parameter for two (2) Compound V3 assets.
## Background
Gauntlet's simulation engine has ingested the latest market and liquidity data. These recommendations are Gauntlet's regular parameter recommendations as part of [Dynamic Risk Parameters](https://www.comp.xyz/t/dynamic-risk-parameters/2223).
[Full proposal and forum discussion](https://www.comp.xyz/t/compound-v3-usdc-comet-risk-parameter-updates-2022-12-28/3946)
## Motivation and Specification
This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.
Our parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Our parameter recommendations seek to optimize for this objective function. For more details, please see [Gauntlet's Parameter Recommendation Methodology](https://medium.com/gauntlet-networks/gauntlets-parameter-recommendation-methodology-8591478a0c1c) and [Gauntlet's Model Methodology](https://medium.com/gauntlet-networks/gauntlets-model-methodology-ea150ff0bafd).
## Specification
The proposal uses the Configurator contract to configure and upgrade to a new Comet with the updated parameters.
## Dashboard
Gauntlet has launched the [Compound Risk Dashboard](https://gov.gauntlet.network/compoundv3_eth_usdc). The community should use the Dashboard to understand better the updated parameter suggestions and general market risk in Compound.
Value at Risk represents the 95th percentile **insolvency value** that occurs from simulations we run over a range of volatilities to approximate a tail event.
Liquidations at Risk represents the 95th percentile **liquidation volume** that occurs from simulations we run over a range of volatilities to approximate a tail event.
*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.*
# Risk Parameter Updates for USDC Comet Market
## Simple Summary
A proposal to adjust two (2) parameters for two (2) Compound V3 assets on the USDC market.
* Increase the supply cap of UNI on the Comet USDC market from 1,250,000 UNI to 2,300,000 UNI.
* Decrease COMP liquidation factor on the Comet USDC market from 93% to 88%.
## Background
Gauntlet's simulation engine has ingested the latest market and liquidity data. These recommendations are Gauntlet's regular parameter recommendations as part of [Dynamic Risk Parameters](https://www.comp.xyz/t/dynamic-risk-parameters/2223/16).
Full proposal and forum discussion can be found in the post to [increase UNI supply cap](https://www.comp.xyz/t/increase-uni-supply-cap-in-the-usdc-comet-market/3838) and [decrease COMP liquidation factor](https://www.comp.xyz/t/compound-v3-usdc-market-risk-parameter-updates-2022-12-01/3818).
## Motivation
This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.
Our parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Our parameter recommendations seek to optimize for this objective function. For more details, please see [Gauntlet's Parameter Recommendation Methodology](https://medium.com/gauntlet-networks/gauntlets-parameter-recommendation-methodology-8591478a0c1c) and [Gauntlet's Model Methodology](https://medium.com/gauntlet-networks/gauntlets-model-methodology-ea150ff0bafd).
## Specification
The proposal uses the `Configurator` contract to update the asset parameters listed above for `cUSDCv3` using the `updateAsset` methods and then upgrades `cUSDCv3` to use the newly configured `Comet`.
*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.*
_setMarketBorrowCaps(address[],uint256[])# Borrow Caps for Compound V2 Assets
## Simple Summary
A proposal to adjust ten (10) risk parameters (borrow caps) for ten (10) Compound V2 assets.
## Background
Gauntlet's simulation engine has ingested the latest market and liquidity data. These recommendations are Gauntlet's regular parameter recommendations as part of [Dynamic Risk Parameters](https://www.comp.xyz/t/dynamic-risk-parameters/2223/16).
[Full proposal and forum discussion](https://www.comp.xyz/t/risk-parameter-updates-2022-11-23/3802)
## Motivation and Specification
This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.
Our parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Our parameter recommendations seek to optimize for this objective function. For more details, please see [Gauntlet's Parameter Recommendation Methodology](https://medium.com/gauntlet-networks/gauntlets-parameter-recommendation-methodology-8591478a0c1c) and [Gauntlet's Model Methodology](https://medium.com/gauntlet-networks/gauntlets-model-methodology-ea150ff0bafd).
*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.*
_setCollateralFactor(address,uint256)# Risk Parameter Updates for 1 Collateral Asset
## Simple Summary
A proposal to adjust one (1) parameter for one (1) Compound V2 asset.
We recommend decreasing SUSHI collateral factor from 73% to 70%. The community has aligned on a [risk off framework](https://snapshot.org/#/comp-vote.eth/proposal/bafkreiar7qfbmmabclsogilncy542cyenehjulmdhhewuzojdooer4tnje).
## Background
Gauntlet's simulation engine has ingested the latest market and liquidity data. These recommendations are Gauntlet's regular parameter recommendations as part of [Dynamic Risk Parameters](https://www.comp.xyz/t/dynamic-risk-parameters/2223/16) and align with the [Moderate risk level](https://www.comp.xyz/t/community-risk-level-consensus-check/2437) chosen by the Compound community.
[Full proposal and forum discussion](https://www.comp.xyz/t/risk-parameter-updates-2022-10-26/3735)
## Motivation and Specification
This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.
Our parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Our parameter recommendations seek to optimize for this objective function. For more details, please see [Gauntlet's Parameter Recommendation Methodology](https://medium.com/gauntlet-networks/gauntlets-parameter-recommendation-methodology-8591478a0c1c) and [Gauntlet's Model Methodology](https://medium.com/gauntlet-networks/gauntlets-model-methodology-ea150ff0bafd).
## Dashboard
Gauntlet has launched the [Compound Risk Dashboard](https://gov.gauntlet.network/compound). The community should use the Dashboard to understand better the updated parameter suggestions and general market risk in Compound.
Value at Risk represents the 95th percentile **insolvency value** that occurs from simulations we run over a range of volatilities to approximate a tail event.
Liquidations at Risk represents the 95th percentile **liquidation volume** that occurs from simulations we run over a range of volatilities to approximate a tail event.
These parameter changes decrease borrow usage by 1 basis point, decrease VaR by $8.15k and decrease SUSHI VaR by 14.3%
*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.*
_setMintPaused(address,bool)_setMintPaused(address,bool)_setMintPaused(address,bool)_setMintPaused(address,bool)# Pause Supply for Compound Assets
## Simple Summary
A proposal to pause supply for ZRX, BAT, MKR, and YFI on Compound III.
## Background
Details are provided in the governance [forum post](https://www.comp.xyz/t/investigate-market-manipulation-risk-in-zrx-and-other-tokens/3555/6?u=pauljlei).
## Motivation
An oracle manipulation-based attack analogous to the one that cost Mango Markets $117m is much less likely to occur on Compound due to collateral assets having much deeper liquidity than MNGO and Compound requiring loans to be over-collateralized. However, out of an abundance of caution, we propose pausing supply for the above assets, given their relative liquidity profiles.
Importantly, this will be a step towards incentivizing migration from Compound V2 to Compound V3, which the community has voiced support for. Compound V3 has meaningfully more risk controls, including supply caps.
## Specification
- Pauses supplying on cZRX, cBAT, cMKR, and cYFI by calling `_setMintPaused` on the Comptroller contract
*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.*
_setReserveFactor(uint256)_setMintPaused(address,bool)# Risk Parameter Changes for FEI: Part 2
## Simple Summary
A proposal to adjust risk parameters for FEI as follows:
* Pause cFEI minting.
* Set reserve factor to 100%.
## Background
Details are provided in the governance forum posts regarding [FEI](https://www.comp.xyz/t/deprecate-fei-market/3513).
## Motivation
In light of Tribe DAO’s proposal to enter a terminal state, the FEI market on Compound should be deprecated. Pausing FEI supplying and setting a 100% reserve factor is the second step in winding down the FEI market.
This will allow all borrowing positions to be immediately closed. To avoid having your position closed, we’d recommend FEI borrowers on Compound repay their positions as soon as possible.
## Specification
- Sets the cFEI reserve factor to 100% by calling `_setReserveFactor` on the cFEI contract
- Pauses supplying on cFEI by calling `_setMintPaused` on the Comptroller contract
*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.*
updateAssetSupplyCap(address,address,uint128)updateAssetSupplyCap(address,address,uint128)updateAssetSupplyCap(address,address,uint128)deployAndUpgradeTo(address,address)# Increase Compound III Supply Caps
This is a repost of [Compound Proposal 127](https://compound.finance/governance/proposals/127), given that the proposal did not reach quorum.
This proposal begins raising collateral supply caps, so that Compound III can continue expanding past its trial phase. The changes are specified on the [governance forum](https://www.comp.xyz/t/compound-iii-supply-caps/3628) and summarized below:
### Proposed Supply Caps
75,000 ETH, 6,000 WBTC, 600,000 COMP
### Proposal
The first three actions of [the proposal](https://github.com/compound-finance/comet/pull/576) raise supply caps for COMP, WBTC, and WETH accordingly, in the Configurator. The fourth action deploys a new implementation from the Configurator and upgrades the market to use the new implementation.
*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.*
_setReserveFactor(uint256)_setBorrowPaused(address,bool)# Risk Parameter Changes for FEI
## Simple Summary
A proposal to adjust risk parameters for FEI as follows:
* Pause FEI borrowing.
* Set reserve factor to 99%.
## Background
Details are provided in the governance forum posts regarding [FEI](https://www.comp.xyz/t/deprecate-fei-market/3513).
## Motivation
In light of Tribe DAO’s proposal to enter a terminal state, the FEI market on Compound should be deprecated. Pausing FEI borrowing and setting a high reserve factor is the first step in winding down the FEI market.
## Specification
- Sets the cFEI reserve factor to 99% by calling `_setReserveFactor` on the cFEI contract
- Pauses borrowing on cFEI by calling `_setBorrowPaused` on the `Comptroller` contract, passing the cFEI address and true
*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.*
_setCollateralFactor(address,uint256)# Risk Parameter Updates for 1 Collateral Asset
## Simple Summary
A proposal to adjust one (1) parameter for one (1) Compound asset.
## Background
Gauntlet's simulation engine has ingested the latest market and liquidity data. This proposal is a batch update of risk parameters to align with the [Moderate risk level](https://www.comp.xyz/t/community-risk-level-consensus-check/2437) chosen by the Compound community. These parameter updates are the seventeenth of Gauntlet's regular parameter recommendations as part of [Dynamic Risk Parameters](https://www.comp.xyz/t/dynamic-risk-parameters/2223).
[Full proposal and forum discussion](https://www.comp.xyz/t/risk-parameter-updates-2022-08-24/3521)
## Motivation and Specification
This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.
Our parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Our parameter recommendations seek to optimize for this objective function. For more details, please see [Gauntlet's Parameter Recommendation Methodology](https://medium.com/gauntlet-networks/gauntlets-parameter-recommendation-methodology-8591478a0c1c) and [Gauntlet's Model Methodology](https://medium.com/gauntlet-networks/gauntlets-model-methodology-ea150ff0bafd).
## Dashboard
Gauntlet has launched the [Compound Risk Dashboard](https://gov.gauntlet.network/compound). The community should use the Dashboard to understand better the updated parameter suggestions and general market risk in Compound.
Value at Risk represents the 95th percentile **insolvency value** that occurs from simulations we run over a range of volatilities to approximate a tail event.
Liquidations at Risk represents the 95th percentile **liquidation volume** that occurs from simulations we run over a range of volatilities to approximate a tail event.
These parameter changes increase borrow usage by 16 basis points and decrease LaR by $5.1M.
*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.*
_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256) H# Risk Parameter Updates for 2 Collateral Assets
## Simple Summary
A proposal to adjust two (2) parameters for two (2) Compound assets.
## Background
Gauntlet's simulation engine has ingested the latest market and liquidity data following the recent market crash. This proposal is a batch update of risk parameters to align with the [Moderate risk level](https://www.comp.xyz/t/community-risk-level-consensus-check/2437) chosen by the Compound community. These parameter updates are the thirteenth of Gauntlet's regular parameter recommendations as part of [Dynamic Risk Parameters](https://www.comp.xyz/t/dynamic-risk-parameters/2223/16).
[Full proposal and forum discussion](https://www.comp.xyz/t/risk-parameter-updates-2022-06-15/3323)
## Motivation and Specification
This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.
Our parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Our parameter recommendations seek to optimize for this objective function. For more details, please see [Gauntlet's Parameter Recommendation Methodology](https://medium.com/gauntlet-networks/gauntlets-parameter-recommendation-methodology-8591478a0c1c) and [Gauntlet's Model Methodology](https://medium.com/gauntlet-networks/gauntlets-model-methodology-ea150ff0bafd).
## Dashboard
Gauntlet has launched the [Compound Risk Dashboard](https://gov.gauntlet.network/compound). The community should use the Dashboard to understand better the updated parameter suggestions and general market risk in Compound.
Value at Risk represents the 95th percentile **insolvency value** that occurs from simulations we run over a range of volatilities to approximate a tail event.
Liquidations at Risk represents the 95th percentile **liquidation volume** that occurs from simulations we run over a range of volatilities to approximate a tail event.
These parameter changes increase borrow usage by 11 basis points with no change in Value at Risk or Liquidations at Risk.
*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.*
_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256) H# Risk Parameter Updates for 5 Collateral Assets
## Simple Summary
A proposal to adjust five (5) parameters for five (5) Compound assets.
## Background
Gauntlet's simulation engine has ingested the latest market and liquidity data following the recent market crash. This proposal is a batch update of risk parameters to align with the [Moderate risk level](https://www.comp.xyz/t/community-risk-level-consensus-check/2437) chosen by the Compound community. These parameter updates are the twelfth of Gauntlet's regular parameter recommendations as part of [Dynamic Risk Parameters](https://www.comp.xyz/t/dynamic-risk-parameters/2223/16).
[Full proposal and forum discussion](https://www.comp.xyz/t/risk-parameter-updates-2022-06-01/3287)
## Motivation and Specification
This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.
Our parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Our parameter recommendations seek to optimize for this objective function. For more details, please see [Gauntlet's Parameter Recommendation Methodology](https://medium.com/gauntlet-networks/gauntlets-parameter-recommendation-methodology-8591478a0c1c) and [Gauntlet's Model Methodology](https://medium.com/gauntlet-networks/gauntlets-model-methodology-ea150ff0bafd).
## Dashboard
Gauntlet has launched the [Compound Risk Dashboard](https://gov.gauntlet.network/compound). The community should use the Dashboard to understand better the updated parameter suggestions and general market risk in Compound.
Value at Risk represents the 95th percentile **insolvency value** that occurs from simulations we run over a range of volatilities to approximate a tail event.
Liquidations at Risk represents the 95th percentile **liquidation volume** that occurs from simulations we run over a range of volatilities to approximate a tail event.
These parameter changes increase borrow usage by 8 basis points with no change in Value at Risk or Liquidations at Risk.
*<sup>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.<sup>*
_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)# Risk Parameter Updates for 5 Collateral Assets
## Simple Summary
A proposal to adjust five (5) parameters for five (5) Compound assets.
## Background
Gauntlet's simulation engine has ingested the latest market and liquidity data following the recent market crash. This proposal is a batch update of risk parameters to align with the [Moderate risk level](https://www.comp.xyz/t/community-risk-level-consensus-check/2437) chosen by the Compound community. These parameter updates are the eleventh of Gauntlet's regular parameter recommendations as part of [Dynamic Risk Parameters](https://www.comp.xyz/t/dynamic-risk-parameters/2223/16).
[Full proposal and forum discussion](https://www.comp.xyz/t/risk-parameter-updates-2022-05-18/3253)
## Motivation and Specification
This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.
Our parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Our parameter recommendations seek to optimize for this objective function. For more details, please see [Gauntlet's Parameter Recommendation Methodology](https://medium.com/gauntlet-networks/gauntlets-parameter-recommendation-methodology-8591478a0c1c) and [Gauntlet's Model Methodology](https://medium.com/gauntlet-networks/gauntlets-model-methodology-ea150ff0bafd).
## Dashboard
Gauntlet has launched the [Compound Risk Dashboard](https://gov.gauntlet.network/compound). The community should use the Dashboard to understand better the updated parameter suggestions and general market risk in Compound.
Value at Risk represents the 95th percentile **insolvency value** that occurs from simulations we run over a range of volatilities to approximate a tail event.
Liquidations at Risk represents the 95th percentile **liquidation volume** that occurs from simulations we run over a range of volatilities to approximate a tail event.
These parameter changes increase borrow usage by 28 basis points with no change in Value at Risk or Liquidations at Risk.
Our recent [market downturn report](https://www.comp.xyz/t/compound-market-downturn-risk-review-may-2022/3251) showed that many collaterals are resilient to insolvencies, as our simulation models have predicted.
Since the recent market crash, user positions are generally more highly collateralized, partly due to previously lowly collateralized positions having been liquidated during the crash. Many top whale suppliers repaid some of their borrows during the crash, thus avoiding liquidations. As a result, Gauntlet's simulations reflect that Compound can prudently increase collateral factors post-crash.
Note that we are proposing increasing collateral factors for the stablecoins USDC and DAI. Recursive borrowing has decreased in the past month for both assets. The partially recursive positions have a substantial amount of other collateral assets locked, thus leading to a low chance of insolvency in those positions, as our simulation results reflect.
_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)# Risk Parameter Updates for 7 Collateral Assets
## Simple Summary
A proposal to adjust seven (7) parameters for seven (7) Compound assets.
## Background
This proposal is a batch update of risk parameters to align with the [Moderate risk level](https://www.comp.xyz/t/community-risk-level-consensus-check/2437) chosen by the Compound community. These parameter updates are the eleventh of Gauntlet's regular parameter recommendations as part of [Dynamic Risk Parameters](https://www.comp.xyz/t/dynamic-risk-parameters/2223/16).
[Full proposal and forum discussion](https://www.comp.xyz/t/risk-parameter-updates-2022-05-04/3215)
## Motivation and Specification
This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.
Our parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Our parameter recommendations seek to optimize for this objective function. For more details, please see [Gauntlet's Parameter Recommendation Methodology](https://medium.com/gauntlet-networks/gauntlets-parameter-recommendation-methodology-8591478a0c1c) and [Gauntlet's Model Methodology](https://medium.com/gauntlet-networks/gauntlets-model-methodology-ea150ff0bafd).
## Dashboard
Gauntlet has launched the [Compound Risk Dashboard](https://gov.gauntlet.network/compound). The community should use the Dashboard to understand better the updated parameter suggestions and general market risk in Compound.
Value at Risk represents the 95th percentile **insolvency value** that occurs from simulations we run over a range of volatilities to approximate a tail event.
Liquidations at Risk represents the 95th percentile **liquidation volume** that occurs from simulations we run over a range of volatilities to approximate a tail event.
These parameter changes increase borrow usage by 31 basis points and have relatively minimal increases in Value at Risk and Liquidations at Risk.
Note that we are proposing increasing collateral factors for the stablecoins USDC and DAI. Recursive borrowing has decreased in the past month for both assets. The partially recursive positions have a substantial amount of other collateral assets locked, thus leading to a low chance of insolvency in those positions, as our simulation results reflect.
_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)# Risk Parameter Updates for MKR and AAVE
## Simple Summary
A proposal to adjust two (2) parameters for two (2) Compound assets.
## Background
This proposal is a batch update of risk parameters to align with the [Moderate risk level](https://www.comp.xyz/t/community-risk-level-consensus-check/2437) chosen by the Compound community. These parameter updates are the tenth of Gauntlet's regular parameter recommendations as part of [Dynamic Risk Parameters](https://www.comp.xyz/t/dynamic-risk-parameters/2223/16).
[Full proposal and forum discussion](https://www.comp.xyz/t/risk-parameter-updates-2022-04-20/3183)
## Motivation and Specification
This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.
Our parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Our parameter recommendations seek to optimize for this objective function. For more details, please see [Gauntlet's Parameter Recommendation Methodology](https://medium.com/gauntlet-networks/gauntlets-parameter-recommendation-methodology-8591478a0c1c) and [Gauntlet's Model Methodology](https://medium.com/gauntlet-networks/gauntlets-model-methodology-ea150ff0bafd).
