0xdd659911…9abcsent to0x683a4f99…6c02·#16,171,998·view on Etherscan
# 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.*