Simple Summary
If the community wishes to proceed with listing USDC and USDT as collateral on the Mainnet WETH and WBTC comets, Gauntlet recommends the following risk parameters:
Risk Parameters
| Comet |
Collateral |
Supply Cap |
Collateral Factor (CF) |
Liquidation Factor (LF) |
Liquidation Penalty (LP) |
| Mainnet WETH |
USDC |
20M |
83% |
88% |
7% |
| Mainnet WETH |
USDT |
20M |
83% |
88% |
7% |
| Mainnet WBTC |
USDC |
10M |
80% |
85% |
10% |
| Mainnet WBTC |
USDT |
10M |
80% |
85% |
10% |
Slippage
Mainnet WETH
USDC
USDT
Mainnet WBTC
USDC
USDT
Analysis
Supply Caps
Given the above slippage results, Gauntlet recommends setting supply caps on Mainnet WETH to 20M for both USDC and USDT. The ~2% slippage on both swaps falls well below the 7% liquidation penalty, ensuring sufficient incentive for liquidators.
Similarly, Gauntlet recommends setting supply caps on Mainnet WBTC to 10M for both USDC and USDT. The ~2% slippage on both swaps falls well below the 10% liquidation penalty.
CF/LF/LP
Mainnet WETH
Gauntlet recommends aligning CF, LF, and LP with those for WETH collateral on the Mainnet USDC and USDT comets.
Mainnet WBTC
Gauntlet recommends aligning CF, LF, and LP with those for WBTC collateral on the Mainnet USDC and USDT comets.
Next Steps
We welcome community feedback.
1 Like
Add USDC and USDT to the WETH market on Mainnet
PR - Add USDC and USDT to WETH market on Mainnet by MishaShWoof · Pull Request #1057 · compound-finance/comet · GitHub
PR(woof) - Add USDC and USDT to WETH market on Mainnet by MishaShWoof · Pull Request #254 · woof-software/comet · GitHub
Proposal - Tally | Compound | Add USDC and USDT as collaterals into cWETHv3 on Mainnet
Recommendations
The recommendations provided by Gauntlet
| № |
Name |
USDC |
| 1 |
SupplyCap |
50M(e6) |
| 2 |
USDC token Decimals |
6 |
| 3 |
USDC token Address |
0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48 |
| 4 |
Collateral Factor |
80% |
| 5 |
Liquidation Factor |
85% |
| 6 |
Liquidation Penalty |
5% |
| № |
Name |
USDT |
| 1 |
SupplyCap |
50M(e6) |
| 2 |
USDT token Decimals |
6 |
| 3 |
USDT token Address |
0xdAC17F958D2ee523a2206206994597C13D831ec7 |
| 4 |
Collateral Factor |
80% |
| 5 |
Liquidation Factor |
85% |
| 6 |
Liquidation Penalty |
5% |
Actions
| № |
Action name |
Link |
Status |
| 1 |
Run Slither |
Link |
Success |
| 2 |
Run Forge Tests |
Link |
Success |
| 3 |
Run Tests With Gas Profiler |
Link |
Success |
| 4 |
Run Semgremp |
Link |
Success |
| 5 |
Run Scenarios (mainnet-weth) |
Link |
Success |
| 6 |
Run Unit Tests |
Link |
Success |
| 7 |
Run ESLint |
Link |
Success |
| 8 |
Run Contact Linter |
Link |
Success |
| 9 |
Run Prepare |
Link |
Success |
| 10 |
Run Enact impersonate |
Link |
Success |
| 11 |
Tenderly simulation (mainnet) |
Link |
Success |
| 12 |
Run Enact (by delegator) |
Link |
Success |
Artifacts
| № |
Name |
Value |
| 1 |
Migration name |
1762179749_add_usdc_and_usdt_collateral |
| 2 |
Branch name |
woof-software/add-usdc-and-usdt-to-mainnet-weth |
| 3 |
Prepare id |
19431679451 |
| 4 |
Network |
mainnet |
| 5 |
Deployment |
weth |
Description
Add USDC and USDT as collaterals into cWETHv3 on Mainnet
Proposal summary
WOOF proposes to add USDC and USDT into cWETHv3 on Ethereum network. This proposal takes the governance steps recommended and necessary to update a Compound III WETH market on Ethereum. 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 on the recommendations from Gauntlet.
Further detailed information can be found on the corresponding proposal pull request and forum discussion.
Proposal Actions
The first action adds USDC asset as collateral with corresponding configurations.
The second action adds USDT asset as collateral with corresponding configurations.
The third action upgrades Comet to a new version.
