[Gauntlet] Polygon USDC - Reward Recommendations

Proposals
11

Hi @tylerw ,

Here’s an update on the current COMP rewards structure in Polygon v3 USDC:

  • Daily COMP Supply Rewards: 34.73 COMP
  • Daily COMP Borrow Rewards: 34.73 COMP

Assuming maxed-out supply caps and current liquidation factors, the total borrowing power would be $82.29M.

Here’s a breakdown based on our assumptions:

  • Borrow Usage (60%): This leads to a borrowing volume of $49.37M USDC.
  • Utilization (80%): Corresponding to a supply volume of $61.72M USDC.

With the above utilization and the present Interest Rate curve:

  • Supply APR: 2.6%
  • Borrow APR: 4.3%

Given the current COMP price of $46:

  • Supply Distribution APR: 0.9%
  • Borrow Distribution APR: 1.2%

This results in the following Net APRs:

  • Net Supply APR: 3.5%
  • Net Borrow APR: 3.1%

The current projected net APRs are within the reasonable ranges. If the community believes there is still growth to be had in the comet, we do not currently recommend changes to the COMP rewards on Polygon v3 USDC comet.