[Gauntlet] - XAUt Risk Recommendations for Mainnet USDT

Proposals
1

Simple Summary

Should the community choose to list XAUt on the Mainnet USDT Comet, Gauntlet recommends the following risk parameters:

Risk Parameters

Comet Collateral Supply Cap Collateral Factor (CF) Liquidation Factor (LF) Liquidation Penalty (LP)
Mainnet USDT XAUt 200 70% 75% 10%

DEX Liquidity

Pool Type Pool Name Pool URL TVL ($) 24H Volume ($)
Uniswap v3 XAUt / WBTC Link 7.6M 826.9K
Uniswap v3 XAUt / USDT Link 7M 4.1M

Total TVL: $14.6MM

Slippage

USDT

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Analysis

Supply Caps

Given the observed slippage, Gauntlet recommends setting the supply cap to 200 XAUt. The slippage is under 1%, which is well below the 10% liquidation penalty, ensuring sufficient incentive for liquidators. We recommend setting the supply cap relatively low to gauge market demand and increasing it as needed when demand is validated.

CF/LF/LP

Gauntlet recommends aligning with the liquidation penalty (LP) with other blue-chip non-stable collaterals on the comet at 10%. We recommend setting CF to 70% and the LF to 75% to maintain a standard 5% buffer.

Next Steps

  • We welcome community feedback.
4 Likes
2

Great to see this !

200 XAUT as initial Supply Cap is a good start.

Gold is a prime collateral (has always been throughout History!) and XAUT doubled its TVL in 2025. It is therefore a very timely moment to list on Compound.

2 Likes
3

Add XAUt to cUSDTv3 on Mainnet

[Proposal link]

Proposal Specification

PR - https://github.com/compound-finance/comet/pull/1085

Recommendations

The recommendations provided by Gauntlet

№ Name Value
1 Name XAUt
2 XAUt token Decimals 6
3 XAUt token Address 0x68749665FF8D2d112Fa859AA293F07A622782F38
4 Price oracle address 0x214eD9Da11D2fbe465a6fc601a91E62EbEc1a0D6
5 Collateral Factor 70%
6 Liquidation Factor 75%
7 Liquidation Penalty 10%
8 SupplyCap 200(e6)

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-usdt) Link Success
6 Run Unit Tests Link Success
7 Run ESLint Link Success
8 Run Contact Linter Link Success
9 Run Enact impersonate Link Success
10 Tenderly simulation (mainnet) Link Success
11 Run Enact (by delegate) Link Success

Artifacts

№ Name Value
1 Migration name 1768394959_add_xaut_collateral
2 Branch name woof-software/add-xaut-to-mainnet-usdt
3 Prepare id -
4 Network mainnet
5 Deployment usdt

Description

# Add XAUt as collateral into cUSDTv3 on Ethereum

## Proposal summary

WOOF! proposes to add XAUt into cUSDTv3 on Ethereum network. This proposal takes the governance steps recommended and necessary to update a Compound III USDT market on Ethereum.

Simulations have confirmed the market’s readiness, as much as possible, using the [Comet scenario suite](https://github.com/compound-finance/comet/tree/main/scenario). The new parameters include setting the risk parameters based off of the [recommendations from Gauntlet](https://www.comp.xyz/t/gauntlet-xaut-risk-recommendations-for-mainnet-usdt/7539/1).

Further detailed information can be found on the corresponding [proposal pull request](https://github.com/compound-finance/comet/pull/1085) and [forum discussion](https://www.comp.xyz/t/gauntlet-xaut-risk-recommendations-for-mainnet-usdt/7539).

## Proposal Actions

The first proposal action adds XAUt asset as collateral with corresponding configurations.