Simple Summary
Gauntlet recommends the following risk recommendations to the protocol:
Risk Parameters
| Status |
Comet |
Asset |
Supply Cap |
Collateral Factor (CF) |
Liquidation Penalty(LP) |
| Current |
Ronin WETH |
RON |
3,000,000 |
75% |
12% |
| Proposed |
Ronin WETH |
RON |
0 |
50% |
20% |
| Current |
Ronin WETH |
USDC |
400,000 |
83% |
5% |
| Proposed |
Ronin WETH |
USDC |
0 |
60% |
15% |
| Current |
Ronin WETH |
AXS |
300,000 |
70% |
20% |
| Proposed |
Ronin WETH |
AXS |
0 |
50% |
25% |
| Current |
Ronin WRON |
WETH |
500 |
75% |
10% |
| Proposed |
Ronin WRON |
WETH |
0 |
50% |
20% |
| Current |
Ronin WRON |
AXS |
300,000 |
72% |
15% |
| Proposed |
Ronin WRON |
AXS |
0 |
50% |
25% |
| Current |
Ronin WRON |
USDC |
500,000 |
75% |
12% |
| Proposed |
Ronin WRON |
USDC |
0 |
50% |
20% |
Interest Rate Curve Parameters
Ronin WETH
| Parameter |
Current Value |
Recommended Value |
| Annual Borrow Interest Rate Base |
0.01 |
0.025000 |
| Annual Borrow Interest Rate Slope Low |
0.0155 |
0.017647 |
| Borrow Kink |
0.9 |
0.850000 |
| Annual Borrow Interest Rate Slope High |
1.26 |
0.732667 |
| Annual Supply Interest Rate Base |
0.0 |
0.0 |
| Annual Supply Interest Rate Slope Low |
0.0216 |
0.020000 |
| Supply Kink |
0.9 |
0.85 |
| Annual Supply Interest Rate Slope High |
1.125 |
0.868012 |
Ronin WRON
| Parameter |
Current Value |
Recommended Value |
| Annual Borrow Interest Rate Base |
0.01 |
0.025000 |
| Annual Borrow Interest Rate Slope Low |
0.017647 |
0.017647 |
| Borrow Kink |
0.9 |
0.85 |
| Annual Borrow Interest Rate Slope High |
1.5 |
0.732667 |
| Annual Supply Interest Rate Base |
0.0 |
0.0 |
| Annual Supply Interest Rate Slope Low |
0.0225 |
0.020000 |
| Supply Kink |
0.9 |
0.85 |
| Annual Supply Interest Rate Slope High |
1.339 |
0.868012 |
Rationale
Risk Recommendations
- Supply Cap Reduction: Setting supply caps to 0 prevents new suppliers from entering the market.
- Collateral Factor Reduction: This adjustment reduces capital efficiency, making the market less appealing without causing users to become liquidatable.
- Increased Liquidation Penalty: Raising penalties further disincentivizes usage by increasing the cost of liquidation, while reducing risk to the comet.
Interest Rate Curve Recommendations
The proposed updates include:
- Reducing the kink from 90% to 85%.
- Increase borrow base APY and reduce supply APY slopes. This stabilizes reserve growth across utilization levels.
Ronin WETH
Ronin WRON
These changes aim to disincentivize TVL inflows and accelerate the market’s deprecation.
Next Steps
- We welcome community feedback.
Depreciate cWETHv3 on Ronin
PR - https://github.com/compound-finance/comet/pull/1083
PR(woof) - https://github.com/woof-software/comet/pull/310
Proposal - Tally | Compound | Depreciate cWETHv3 on Ronin
Recommendations
The recommendations provided by Gauntlet
Actions
| â„– |
Action name |
Link |
Status |
| 1 |
Run Slither |
Link |
Success |
| 2 |
Run Forge Tests |
Link |
Success |
| 3 |
Run Tests With Gas Profiler |
Link |
Success |
| 4 |
Run Semgremp |
Link |
Success |
| 5 |
Run Scenarios (ronin-weth) |
Link |
Success |
| 6 |
Run Unit Tests |
Link |
Success |
| 7 |
Run ESLint |
Link |
Success |
| 8 |
Run Contact Linter |
Link |
Success |
| 9 |
Run Prepare |
Link |
Success |
| 10 |
Run Enact impersonate |
Link |
Success |
| 11 |
Tenderly Simulation (mainnet) |
Link |
Success |
| 12 |
Tenderly Simulation (ronin) |
Link |
Success |
| 13 |
Run Enact (by delegator) |
Link |
Success |
Artifacts
| â„– |
Name |
Value |
| 1 |
Migration name |
1767882783_depreciate_comet |
| 2 |
Branch name |
woof-software/depreciate-ronin-weth |
| 3 |
Prepare id |
20954498021 |
| 4 |
Network |
ronin |
| 5 |
Deployment |
weth |
Price feeds
| â„– |
Name |
Address |
Route |
| 1 |
USDC |
0x0090A563C4832E4E519F5f054483519b1A83c8C3 |
USDC / USD -> ETH / USD (reversed) |
| 2 |
WRON |
0xAdD81aAF528784531E888317AFcD429b00C9f1b3 |
WRON / USD -> ETH / USD (reversed) |
| 3 |
AXS |
0x41E345A046A73Ef15316191b41f3ABEA4cEF1168 |
Constant price of $1 |
Description
# Depreciate cWETHv3 on Ronin
## Proposal summary
This proposal updates price feeds to API3, since Chainlink soon will no longer support Ronin and updates interest rate curve parameters for WETH market on Ronin.
It is done to prevent new suppliers from entering the market, reduces capital efficiency, making the market less appealing without causing users to become liquidatable and raises liquidation penalty to further disincentivizes usage by increasing the cost of liquidation, while reducing risk to the comet.
Further detailed information can be found on the corresponding [proposal pull request](https://github.com/compound-finance/comet/pull/1083) and [forum discussion](https://www.comp.xyz/t/gauntlet-depreciating-ronin-weth-and-wron-comets/7308).
## Proposal actions
The proposal sends the following encoded calls to the governance receiver on Ronin:
- Update USDC, AXS, and WRON price feeds to API3 oracle
- Set supply caps to 0 for all collateral assets
- Reduce collateral factors
- Increase liquidation penalties
- Update interest rate curve parameters:
- \`setBorrowPerYearInterestRateBase\`
- \`setBorrowPerYearInterestRateSlopeLow\`
- \`setBorrowKink\`
- \`setBorrowPerYearInterestRateSlopeHigh\`
- \`setSupplyPerYearInterestRateBase\`
- \`setSupplyPerYearInterestRateSlopeLow\`
- \`setSupplyKink\`
- \`setSupplyPerYearInterestRateSlopeHigh\`
- Deploy and upgrade to new configuration via \`deployAndUpgradeTo\`
Depreciate cWRONv3 on Ronin
PR - https://github.com/compound-finance/comet/pull/1084
PR(woof) - https://github.com/woof-software/comet/pull/311
Proposal - Tally | Compound | Depreciate cWRONv3 on Ronin
Recommendations
The recommendations provided by Gauntlet
Actions
| â„– |
Action name |
Link |
Status |
| 1 |
Run Slither |
Link |
Success |
| 2 |
Run Forge Tests |
Link |
Success |
| 3 |
Run Tests With Gas Profiler |
Link |
Success |
| 4 |
Run Semgremp |
Link |
Success |
| 5 |
Run Scenarios (ronin-wron) |
Link |
Success |
| 6 |
Run Unit Tests |
Link |
Success |
| 7 |
Run ESLint |
Link |
Success |
| 8 |
Run Contact Linter |
Link |
Success |
| 9 |
Run Prepare |
Link |
Success |
| 10 |
Run Enact impersonate |
Link |
Success |
| 11 |
Tenderly Simulation (mainnet) |
Link |
Success |
| 12 |
Tenderly Simulation (ronin) |
Link |
Success |
| 13 |
Run Enact (by delegator) |
Link |
Success |
Artifacts
| â„– |
Name |
Value |
| 1 |
Migration name |
1767889363_depreciate_comet |
| 2 |
Branch name |
woof-software/depreciate-ronin-wron |
| 3 |
Prepare id |
20964522342 |
| 4 |
Network |
ronin |
| 5 |
Deployment |
wron |
Price feeds
| â„– |
Name |
Address |
Route |
| 1 |
USDC |
0x88f415c12d45d4C6DC018553BBE472A4558ff3f8 |
USDC / USD |
| 2 |
WRON |
0xB88e4078AAc88F10C0Ca71086ddCF512Ec54498a |
WRON / USD |
| 3 |
AXS |
0x8AC2b57d15c84755A3333aD68025d2496AE3BeBD |
Constant price of $1 |
| 4 |
WETH |
0x5D173813B4505701e79E654b36A95E6c1FAD4448 |
ETH / USD |
Description
# Depreciate cWRONv3 on Ronin
## Proposal summary
This proposal updates price feeds to API3, since Chainlink soon will no longer support Ronin and updates interest rate curve parameters for WRON market on Ronin.
It is done to prevent new suppliers from entering the market, reduces capital efficiency, making the market less appealing without causing users to become liquidatable and raises liquidation penalty to further disincentivizes usage by increasing the cost of liquidation, while reducing risk to the comet.
Further detailed information can be found on the corresponding [proposal pull request](https://github.com/compound-finance/comet/pull/1084) and [forum discussion](https://www.comp.xyz/t/gauntlet-depreciating-ronin-weth-and-wron-comets/7308).
## Proposal actions
The proposal sends the following encoded calls to the governance receiver on Ronin:
- Update USDC, WETH, AXS, and WRON price feeds to API3 oracle
- Set supply caps to 0 for all collateral assets
- Reduce collateral factors
- Increase liquidation penalties
- Update interest rate curve parameters:
- \`setBorrowPerYearInterestRateBase\`
- \`setBorrowPerYearInterestRateSlopeLow\`
- \`setBorrowKink\`
- \`setBorrowPerYearInterestRateSlopeHigh\`
- \`setSupplyPerYearInterestRateBase\`
- \`setSupplyPerYearInterestRateSlopeLow\`
- \`setSupplyKink\`
- \`setSupplyPerYearInterestRateSlopeHigh\`
- Deploy and upgrade to new configuration via \`deployAndUpgradeTo\`.
I should have caught this earlier but noticed when it was staring me in the face in the on-chain proposal titles: the correct verb here is “deprecate” (make obsolete), not “depreciate” (lower the value of). No need to cancel, just felt compelled to be on the record about this 
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