Gauntlet advises against the addition of gmBTC to Comet Markets. However, if there is strong community interest in its inclusion, Gauntlet suggests listing gmBTC as a collateral against USDC or WBTC comet markets, employing extremely conservative parameters.
gmBTC relies on a centralized liquidity source and lacks atomic swap capabilities. Consequently, flash loans cannot be utilized to instantaneously liquidate gmBTC collateral. Furthermore, it’s important to note that protocols incorporating gmBTC as collateral may inadvertently trigger a race-condition due to the limited centralized liquidity, thereby compromising liquidation efficiencies.
Given the constraints posed by limited liquidity sources and the non-atomic nature of gmBTC, Gauntlet strongly advises against its addition or the implementation of risk-averse parameters until atomic swaps are implemented along with more avenues for liquidity.