Summary
Gauntlet proposes updating the Interest Rate (IR) curves for all Stablecoin Comets to further align with prevailing market rates. Specifically, we recommend decreasing the borrow APR at the kink from 5.25% to 4% for Stablecoin Comets.
Specification
Given the persistent decrease in utilization observed across all stablecoin comets and additional step-wise reductions of SSR from 6.5% to 4.5%, Gauntlet recommends the below IR curve recommendations for all stablecoin comets.
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 | 0.04166 | 0.027778 |
| Borrow Kink | 0.9 | 0.9 |
| Annual Borrow Interest Rate Slope High | 3.475 | 3.6 |
| Annual Supply Interest Rate Base | 0 | 0 |
| Annual Supply Interest Rate Slope Low | 0.04725 | 0.036 |
| Supply Kink | 0.9 | 0.9 |
| Annual Supply Interest Rate Slope High | 3.0947 | 3.196 |
Stablecoin IR curves
Next Steps
Target on-chain proposal 4/22/25