0xdd659911…9abcsent to0x7b3c54e1…cc33·#17,667,376·view on Etherscan
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.*