Simple Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Decrease USDC Ethereum Comet’s LINK Supply Cap from 4,000,000 to 1,000,000
- Decrease USDT Ethereum Comet’s LINK Supply Cap from 2,000,000 to 500,000
- Decrease USDT Ethereum Comet’s UNI Supply Cap from 3,000,000 to 1,300,000
- Decrease USDC Ethereum Comet’s LINK Liquidation Factor from 85% to 79%
- Decrease USDC Ethereum Comet’s LINK Collateral Factor from 79% to 73%
- Increase USDC Ethereum Comet’s LINK Liquidation Penalty from 7% to 17%
- Decrease USDT Ethereum Comet’s LINK Liquidation Factor from 85% to 79%
- Decrease USDT Ethereum Comet’s LINK Collateral Factor from 79% to 73%
- Increase USDT Ethereum Comet’s LINK Liquidation Penalty from 7% to 17%
- Decrease USDC Ethereum Comet’s UNI Liquidation Factor from 79% to 74%
- Decrease USDC Ethereum Comet’s UNI Collateral Factor from 73% to 68%
- Decrease USDT Ethereum Comet’s UNI Liquidation Factor from 81% to 74%
- Decrease USDT Ethereum Comet’s UNI Collateral Factor from 75% to 68%
- Increase USDT Ethereum Comet’s UNI LP from 15% to 17%
Gauntlet will closely monitor the utilization of those assets and make adjustment suggestions timely.
Motivation
Please review the daily utilization of supply cap for the following collateral assets. Their utilizations have stayed low for a while.
USDC Ethereum Comet - LINK
USDT Ethereum Comet - LINK
USDT Ethereum Comet - UNI
Analysis
LINK DEX Liquidity Sources
| pool_name | pool_type | pool_url | pool_tvl_usd | volume_24h_usd |
|---|---|---|---|---|
| LINK / WETH 0.3% | uniswap_v3 | Link | $22.39M | $3.89M |
| stLINK / LINK | curve | Link | $2.59M | $11.03K |
| LINK / WETH | uniswap_v2 | Link | $1.56M | $60.66K |
| LINK / WETH | sushiswap | Link | $1.38M | $15.83K |
| LINK / USDC 0.3% | uniswap_v3 | Link | $771.39K | $76.12K |
| SDL / LINK 1% | uniswap_v3 | Link | $276.28K | $42.76 |
| LINK / WETH 0.27% | balancer_ethereum | Link | $247.44K | $773.32 |
| LINK / WETH | defi_swap | Link | $125.65K | $380.83 |
UNI DEX Liquidity Sources
| pool_name | pool_type | pool_url | pool_tvl_usd | volume_24h_usd |
|---|---|---|---|---|
| UNI / WETH 0.3% | uniswap_v3 | Link | $26.49M | $3.33M |
| UNI / WETH | uniswap_v2 | Link | $4.11M | $136.24K |
| AAVE / UNI 0.3% | uniswap_v3 | Link | $3.55M | $465.04K |
| UNI / WBTC 0.3% | uniswap_v3 | Link | $328.97K | $23.37K |
| UNI / WETH | sushiswap | Link | $280.50K | $13.36K |
| UNI / WETH 1% | uniswap_v3 | Link | $202.71K | $10.07K |
| UNI / SUSHI 0.3% | uniswap_v3 | Link | $194.47K | $12.31K |
| UNI / SUSHI 1% | uniswap_v3 | Link | $191.00K | $7.99K |
| 1INCH / UNI 1% | uniswap_v3 | Link | $132.22K | $3.07K |
LINK Volatility Analysis
LINK → USDC
| Metric | Value |
|---|---|
| Min Price Change Log | -14.62% |
| Max Price Change Log | 12.39% |
| Annualized Daily Log Volatility | 66.05% |
| 30D Log Volatility | 77.91% |
UNI → USDC
| Metric | Value |
|---|---|
| Min Price Change Log | -14.58% |
| Max Price Change Log | 19.92% |
| Annualized Daily Log Volatility | 85.85% |
| 30D Log Volatility | 87.27% |
LINK Slippage
UNI Slippage
Analysis
Risk-off Liquidations
USDC Ethereum Comet
The recommended Collateral Factor decreases would not currently cause new liquidatable user positions.
The table below shows all positions > $5k borrows whose Health Factors are less than 1.17 (Borrow Usage greater than 85%) and become > 5% closer to becoming liquidatable after the Collateral Factor decreases.
| User Address | Total Supply Balance (USD) | Total Borrow Balance (USD) | Initial Borrow Usage | New Borrow Usage | Initial Health Factor | New Health Factor | % Closer to Liquidation | |
|---|---|---|---|---|---|---|---|---|
| 228 | 0x357dfdc34f93388059d2eb09996d80f233037cba | $758.5k | $477.4k | 79.67% | 85.05% | 1.255 | 1.176 | 26.46% |
| 464 | 0x78cfacc715c5e0bc3f69428472d93d18a32c246d | $294.1k | $207.6k | 83.03% | 89.33% | 1.204 | 1.119 | 37.12% |
| 563 | 0xade24c128a7502f99a2786f3e18c67b0c6f15739 | $184.4k | $135.7k | 86.59% | 93.17% | 1.155 | 1.073 | 49.07% |
| 741 | 0x9b2741183c1c4caada1f5cbc068b8d524af8d6c2 | $111.4k | $75.5k | 79.73% | 85.79% | 1.254 | 1.166 | 29.9% |
| 1376 | 0xe3198ec66b32a1eb5cffdca4cc9e61e2a77ef2f8 | $19.8k | $14.1k | 83.82% | 90.19% | 1.193 | 1.109 | 39.37% |
| 1383 | 0xf2f0b05676d1de3920401bb9639ae260fdffc09f | $17.9k | $13.5k | 89.01% | 95.77% | 1.123 | 1.044 | 61.51% |
| 1405 | 0xfc2ff276aa5efbdc0928634a967f8bba171fce91 | $17.7k | $12.7k | 84.45% | 90.86% | 1.184 | 1.101 | 41.22% |
In total, these positions have $936k borrows.
USDT Ethereum Comet
The recommended Collateral Factor decreases would not currently cause new liquidatable user positions.
The table below shows all positions > $5k borrows whose Health Factors are less than 1.17 (Borrow Usage greater than 85%) and become > 5% closer to becoming liquidatable after the Collateral Factor decreases.
| User Address | Total Supply Balance (USD) | Total Borrow Balance (USD) | Initial Borrow Usage | New Borrow Usage | Initial Health Factor | New Health Factor | % Closer to Liquidation | |
|---|---|---|---|---|---|---|---|---|
| 96 | 0xf1d17ad375ab50ef2d3638ba1e1ccb6f284edb33 | $250.1k | $182.9k | 84.44% | 85.24% | 1.184 | 1.173 | 5.14% |
In total, these positions have $182k borrows.
Next Steps
- Welcome feedback from the community
- Post recommendations to on-chain proposal