[Gauntlet] - Interest Rate Curve Recommendations in Stablecoin Comets (3/7/25)

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

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