Gauntlet would like to provide the community with an update on metrics from the Polygon USDC comet over the past week and will include any relevant recommendations.
- If the community believes that demand for the Polygon market has stagnated, Gauntlet recommends decreasing rewards for the comet to mitigate COMP losses.
- USDC borrows are down 1.7%.
- USDC supply is up 9.0%.
- The comet accumulated $2.97k USDC reserves over the past week, with an average reserve growth of 21.1%.
- The comet distributed $33.23k COMP rewards over the past week, for a Net Protocol Profit of -$30.26k.
Below are metrics of the market and parameters over the past week.
Total Collateral (USD) is up 0.8%, from $34.06M to $34.34M.
USDC Borrows are down 1.7%, from $17.86M to $17.56M.
USDC Supply is up 9.0%, from $22.73M to $24.78M.
As seen above, WBTC (60.1%), WETH (37.7%), and MATIC (100%), all have supply cap utilizations < 75%. We do not currently recommend increasing the supply caps.
Above is a time series of supply cap utilization for each asset over the past week.
The minimum USDC utilization was 69.4%, and the maximum was 78.6%.
The minimum USDC reserve growth was 17.3%, and the maximum was 23.5%. The average USDC reserve growth was 21.1%.
The comet steadily accumulated $2.97k USDC reserves, while distributing $33.23k COMP rewards, for a weekly Net Protocol Profit of -$30.26k.
The Polygon comet offers an appealing 5.92% Net Supply APR and a pay-to-borrow rate of +0.96% Net Borrow APR. However, the protocol is still experiencing relatively stagnant growth compared to COMP distributions. If the community believes that demand for the Polygon market has stagnated, Gauntlet recommends decreasing rewards for the comet to mitigate COMP losses. Gauntlet will follow up with a proposal next week to gauge community preferences.