Simple Summary
Gauntlet’s Polygon Compound v3 USDC proposal to allocate 34.73 daily COMP rewards to USDC suppliers and increase supply caps for collateral assets was executed on 5/18/23.
We are excited to update the community that following the proposal, we have observed the following growth after months of stagnation:
- USC supply in the protocol has increased from $5.62M to $18.13M (+222%)
- USDC borrows in the protocol have increased from $4.59M to $12.10M (+163%)
Analysis
Gauntlet’s Polygon Compound v3 USDC proposal to allocate 34.73 daily COMP rewards to USDC suppliers and increase supply caps for collateral assets was executed on 5/18/23.
On the day prior to the proposal, the comet had $5.62M USDC supplied and $4.59M USDC borrowed, at 81.7% utilization, and was experiencing stagnant growth for months.
As seen in the above USDC supply time series chart, on 5/18/23 (the day of proposal execution) the USDC supply increased from $5.62M to $10.84M (+93%), thereby decreasing utilization to 43% and incentivizing borrowers to join, being able to borrow below the 80% kink.
As seen in the above USDC borrows time series chart, borrows slightly increased afterwards, up to $6.76M on 6/5/23, and then up to $12.62M on 6/6/23, due to the user with address 0xef819443b1cbd55ab0b137f644fffa8ebb4208ee joining the protocol, supplying $8.95M WBTC and borrowing $5M USDC.
As a result, since proposal execution:
- USDC supply in the protocol has increased from $5.62M to $18.13M (+222%)
- USDC borrows in the protocol have increased from $4.59M to $12.10M (+163%)