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
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.