0x1d8e0b8f…d9d9sent to0x7b3c54e1…cc33·#22,219,320·view on Etherscan
updateAssetLiquidationFactor(address,address,uint64)deployAndUpgradeTo(address,address)updateAssetLiquidationFactor(address,address,uint64)deployAndUpgradeTo(address,address)updateAssetLiquidateCollateralFactor(address,address,uint64)updateAssetLiquidationFactor(address,address,uint64)deployAndUpgradeTo(address,address)updateAssetLiquidateCollateralFactor(address,address,uint64)updateAssetLiquidationFactor(address,address,uint64)deployAndUpgradeTo(address,address)updateAssetLiquidateCollateralFactor(address,address,uint64)updateAssetLiquidationFactor(address,address,uint64)deployAndUpgradeTo(address,address)updateAssetBorrowCollateralFactor(address,address,uint64)updateAssetLiquidateCollateralFactor(address,address,uint64)updateAssetLiquidationFactor(address,address,uint64)deployAndUpgradeTo(address,address)# [Gauntlet] Risk Parameter Recommendations (02/2025) - V3 Ethereum USDS & V3 Arbitrum USDC/USDT & V3 Polygon USDC/USDT
## Simple Summary
### Specification
#### Liquidation Penalty
| **Comet** | **Asset** | **Parameter** | **Current Value** | **Recommended Value** |
|-------------------------------------|----------|-------------------------|-------------------|-----------------------|
| V3 Arbitrum USDC/USDT | WETH | Liquidation Penalty | 5% | 7% |
| V3 Optimism USDC/USDT | WETH | Liquidation Penalty | 5% | 7% |
| V3 Polygon USDC/USDT | WETH | Liquidation Penalty | 5% | 7% |
#### Liquidation Factor
| **Comet** | **Asset** | **Parameter** | **Current Value** | **Recommended Value** |
|-------------------------------------|----------|-------------------------|-------------------|-----------------------|
| V3 Arbitrum USDC/USDT | WETH | Liquidation Factor | 90% | 88% |
| V3 Optimism USDC/USDT | WETH | Liquidation Factor | 90% | 88% |
#### Collateral Factor
| **Comet** | **Asset** | **Parameter** | **Current Value** | **Recommended Value** |
|-------------------------------------|----------|-------------------------|-------------------|-----------------------|
| V3 Arbitrum USDT | WETH | Collateral Factor | 85% | 83% |
| V3 Ethereum USDS | wstETH | Collateral Factor | 82% | 80% |
## Motivation
During the market downturn on February 3, 2025, WETH and wstETH collateral remained unsold for extended periods before being liquidated. We advise that Compound introduce a strategic buffer between its Liquidation Penalty (LP) and Liquidation Factor (LF). This buffer not only safeguards users from sudden penalties but also contributes to a more robust risk management framework for Compound.
Full proposal and forum discussions can be found in this [post](https://www.comp.xyz/t/gauntlet-risk-parameter-recommendations-02-2025/6400).
# Specification
The proposal updates the parameters 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*