0xb3dd2ca3…3e4dsent to0x683a4f99…6c02·#13,647,736·view on Etherscan
_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)_setCollateralFactor(address,uint256)# Risk Parameter Updates for DAI, BAT, ZRX, and ETH
## Simple Summary
A proposal to adjust four (4) total parameters across four (4) 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 third 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-2021-11-17/2625)
## Motivation and Specification
This set of parameter updates seeks to level set assets to a Moderate risk level of the protocol while making risk trade-offs between specific assets. Note that some are different from the original [risk level consensus check](https://www.comp.xyz/t/community-risk-level-consensus-check/2437) as market conditions have changed.
In order to react to changing market conditions, our analysis recommends decreasing the collateral factors for BAT and ZRX while increasing collateral factors for ETH and DAI. Both BAT and ZRX have increased in volatility and decreased in volume since our last parameter changes. As shown on our dashboard, these changes will slightly increase VaR, but the corresponding increase in borrow usage is substantial.

## Dashboard
Gauntlet has launched the [Compound Risk Dashboard](https://gov.gauntlet.network/compound). The community should use the Dashboard to better understand the updated parameter suggestions and general market risk in Compound.
As shown below, this set of parameter updates will slightly increase VaR, but meaningfully increase borrow usage.
