0xdd659911…9abcsent to0x683a4f99…6c02·#14,650,448·view on Etherscan
_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).
