0xdd659911…9abcsent to0x683a4f99…6c02·#16,336,763·view on Etherscan
# 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.*