Gauntlet Initial Parameter Recommendations - Compound v3 Arbitrum USDC Comet
Summary
We provide two options to the community below. Option 1 is very conservative for the purpose of testing out Compound V3 mechanics. As such, the conservatism is less so derived from market risk (which is Gauntlet’s focus) but more so on the smart contract and other technical risks. Option 2 is less conservative and assumes that the community does not need to test Compound V3 mechanics on a new chain.
Option 1: Very Conservative (Test out Mechanics)
| WETH | WBTC | ARB | GMX | |
|---|---|---|---|---|
| Supply Cap | 2k ($3.79M) | 100 ($3.04M) | 1M ($1.22M) | 10k ($780k) |
| Liquidation Factor | 50% | 45% | 40% | 30% |
| Collateral Factor | 45% | 40% | 35% | 25% |
| Liquidation Bonus | 5% | 5% | 7% | 7% |
Storefront price factor: 80%
IR Curve: Same as Ethereum and Polygon USDC comets
Option 2: Conservative (Assume mechanics are working, then gradually increase aggressiveness of parameters)
| WETH | WBTC | ARB | GMX | |
|---|---|---|---|---|
| Supply Cap | 5k ($9.47M) | 300 ($9.04M) | 4M ($4.88M) | 50k ($3.90M) |
| Liquidation Factor | 85% | 77% | 60% | 45% |
| Collateral Factor | 78% | 70% | 55% | 40% |
| Liquidation Bonus | 5% | 5% | 7% | 7% |
Storefront price factor: 80%
IR Curve: Same as Ethereum and Polygon USDC comets
The supply caps are set as a function of on-chain liquidity and can be increased after the initial launch. The proposed LFs for the initial listing are set conservatively while still being capital efficient enough for usability.
*Note that the ARB token has only been on the market for 3 weeks. It may be prudent for the community to wait longer to list this asset.
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.