Simple Summary
A proposal to adjust six (6) total parameters across six (6) Compound assets.
Abstract
This proposal is a batch update of risk parameters to align with the Moderate risk level chosen by the Compound community. These parameter updates are the first of Gauntlet’s regular parameter recommendations as part of Dynamic Risk Parameters.
Motivation
This set of parameter updates seeks to take the first step in level setting assets to a Moderate risk level of the protocol while making risk trade-offs between specific assets. Note that some are different from the original risk level consensus check as market conditions have changed.
Specification
| Parameter | Current Value | Recommended Value |
|---|---|---|
| AAVE Collateral Factor | 50% | 60% |
| LINK Collateral Factor | 50% | 60% |
| MKR Collateral Factor | 35% | 45% |
| SUSHI Collateral Factor | 40% | 45% |
| USDC Collateral Factor | 75% | 80% |
| YFI Collateral Factor | 35% | 55% |
The suppliers of these assets can borrow more against their collateral and still keep the protocol safe. See below volatility and exchange volume data from 10/25 that were important drivers for the updated parameter recommendations.
| Symbol | Volatility | Collateral Supply (USD) | Average Daily Volume (USD) |
|---|---|---|---|
| AAVE | 1.29 | 6000000 | 130000000 |
| LINK | 0.95 | 185000000 | 643000000 |
| MKR | 1.04 | 1050000 | 77400000 |
| SUSHI | 1.20 | 700000 | 182000000 |
| USDC | 0.073 | 2950000000 | 2580000000 |
| YFI | 0.86 | 715000 | 82000000 |
Next Steps
- Initiate a governance proposal following general consensus in this thread.
- For
- Against
- Abstain
0 voters