Currently, tBTC is listed on the Ethereum USDT, USDC, and USDS comets.
To incentivize tBTC usage, Gauntlet recommends the following tBTC parameter updates across all comets on which it is listed:
Increase tBTC Collateral Factor from 76% to 80%
Increase tBTC Liquidation Factor from 81% to 85%
Additionally, we recommend listing tBTC on the Arbitrum USDT and USDC comets with the following parameters:
Collateral Factor: 80%
Liquidation Factor: 85%
Liquidation Penalty: 10%
Supply Cap: 80 (~$7.94M)
Specification
Recommendations for Existing tBTC Listings:
Comet
Asset
Parameter
Current Value
Recommended Value
Ethereum USDT
tBTC
Collateral Factor
76%
80%
Ethereum USDT
tBTC
Liquidation Factor
81%
85%
Ethereum USDC
tBTC
Collateral Factor
76%
80%
Ethereum USDC
tBTC
Liquidation Factor
81%
85%
Ethereum USDS
tBTC
Collateral Factor
76%
80%
Ethereum USDS
tBTC
Liquidation Factor
81%
85%
Recommendations for New tBTC Listings:
Comet
Asset
Parameter
Recommended Value
Arbitrum USDT
tBTC
Collateral Factor
80%
Arbitrum USDT
tBTC
Liquidation Factor
85%
Arbitrum USDT
tBTC
Liquidation Penalty
10%
Arbitrum USDT
tBTC
Supply Cap
80 (~$7.94M)
Arbitrum USDC
tBTC
Collateral Factor
80%
Arbitrum USDC
tBTC
Liquidation Factor
85%
Arbitrum USDC
tBTC
Liquidation Penalty
10%
Arbitrum USDC
tBTC
Supply Cap
80 (~$7.94M)
Analysis
Currently, tBTC is listed on Ethereum USDT, USDC, and USDS comets, with the following risk parameters:
Collateral Factor: 76%
Liquidation Factor: 81%
Liquidation Penalty: 10%
The current tBTC supplies in each comet are shown below:
Comet
tBTC Supply
Ethereum USDT
$2.78M
Ethereum USDC
$364k
Ethereum USDS
$5k
Given the low tBTC supplies, we recommend increasing the tBTC Collateral Factor from 76% to 80% and the Liquidation Factor from 81% to 85%, while maintaining the Liquidation Penalty at 10%. This improves capital efficiency without increasing the Liquidation Penalty risk.
Additionally, we recommend listing tBTC on the Arbitrum USDT and USDC comets with the following parameters:
The first proposal action adds tBTC to the USDC Comet on Arbitrum. This sends the encoded ‘addAsset’ and ‘deployAndUpgradeTo’ calls across the bridge to the governance receiver on Arbitrum.
WOOF! proposes to add tBTC into cUSDTv3 on Arbitrum network. This proposal takes the governance steps recommended and necessary to update a Compound III USDT market on Arbitrum. Simulations have confirmed the market’s readiness, as much as possible, using the Comet scenario suite. The new parameters include setting the risk parameters based off of the recommendations from Gauntlet.
The first proposal action adds tBTC to the USDT Comet on Arbitrum. This sends the encoded ‘addAsset’ and ‘deployAndUpgradeTo’ calls across the bridge to the governance receiver on Arbitrum.
WOOF! proposes to add tBTC into cUSDCv3 on Arbitrum network. This proposal takes the governance steps recommended and necessary to update a Compound III USDC market on Arbitrum. Simulations have confirmed the market’s readiness, as much as possible, using the Comet scenario suite. The new parameters include setting the risk parameters based off of the recommendations from Gauntlet.
The first proposal action adds tBTC to the USDC Comet on Arbitrum. This sends the encoded ‘addAsset’ and ‘deployAndUpgradeTo’ calls across the bridge to the governance receiver on Arbitrum.
