[WOOF!] Sandbox Development Updates

Protocol Development
5

Hi, @Gauntlet Team,
Thanks for your detailed responses about parameter determination for Compound protocol markets and collateral. Your expertise is valuable for our Compound Sandbox project.
However, some aspects need clarification or further detail. We look forward to your responses to the additional questions below to better understand your methodologies.
To deliver a solid outcome, we’re also inviting https://www.chainrisk.xyz/ led by @Sudipan_Chainrisk to join us in refining calculations based on the material provided by Gauntlet above and the set of clarifying questions listed below. We appreciate your contribution.

Clarification list

Collateral Parameters:

  1. Could you provide detailed quantitative examples of how price impact thresholds influence BorrowCollateralFactor adjustments?
  2. How are historical liquidation premiums quantified for determining LiquidateCollateralFactor?
  3. Are there specific metrics or thresholds (e.g., slippage or deposit concentration) that guide SupplyCap limits?
  4. Have you ever had a situation where you increased the buffer between borrowCF and liquidateCF? Can you give an example?
  5. Does the buffer size depend on the frequency of price updates by Oracle?
  6. What limits do you know for volatile tokens in the current Compound V3? How volatile tokens can be used with each other. For the AERO market, the collateral factor for USDC is already 65%.
  7. How much does the frequency of updating oracles affect the risks? If somebody provides oracles with higher price update rates, is it possible to improve the use of collators?

Interest Rate Curve:

  1. How do kink adjustments differ across asset classes or market conditions?
  2. What stress-testing methodologies are used to validate slope adjustments?

Storefront Price Factor & Target Reserves:

  1. Could you share case studies or examples showing adjustments to the Storefront Price Factor?
  2. What is the exact framework for linking liquidation risks to reserve targets?

Your input on these areas would be immensely helpful in refining our design and ensuring robust implementation. Thank you again for your continued support and collaboration.

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