Summary
Gauntlet proposes updating the Interest Rate (IR) curves for all Stablecoin Comets to better align with prevailing market rates. Specifically, we recommend decreasing the borrow APR at the kink from 6% to 5.25% for Stablecoin Comets.
Specification
Given the decrease in utilization observed across all stablecoin comets lately and the step-wise reduction of SSR from 12.5% to 6.5%, Gauntlet recommends the below IR curves for all stablecoin comets.
USDC Mainnet comet utilization
USDT Mainnet comet utilization
USDS Mainnet comet utilization
USDC Arbitrum comet utilization
USDT Arbitrum comet utilization
Base USDC comet utilization
Optimism USDC comet utilization
Optimism USDT comet utilization
Polygon USDC.e comet utilization
Polygon USDT comet utilization
Scroll USDC comet utilization
The recommended curves are for the following comets:
| Comet |
|---|
| Ethereum USDC |
| Ethereum USDT |
| Ethereum USDS |
| Arbitrum USDC Native |
| Arbitrum USDT |
| Base USDC Native |
| Optimism USDT |
| Optimism USDC |
| Polygon USDC |
| Polygon USDT |
| Scroll USDC |
| Parameter | Current Value | Recommended Value |
|---|---|---|
| Annual Borrow Interest Rate Base | 0.015 | 0.015 |
| Annual Borrow Interest Rate Slope Low | 0.05 | 0.04166 |
| Borrow Kink | 0.9 | 0.9 |
| Annual Borrow Interest Rate Slope High | 3.4 | 3.475 |
| Annual Supply Interest Rate Base | 0 | 0 |
| Annual Supply Interest Rate Slope Low | 0.054 | 0.04725 |
| Supply Kink | 0.9 | 0.9 |
| Annual Supply Interest Rate Slope High | 3.084 | 3.0947 |
Stablecoin IR curves
Next Steps
Target on-chain proposal 3/11/25