Borrow Caps for Compound V2 Assets
ID 135
ID 135
Compound
Compound
Proposed on: Nov 24th, 2022
Proposed on: Nov 24th, 2022
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Proposal
Proposal
Simple Summary
A proposal to adjust ten (10) risk parameters (borrow caps) for ten (10) Compound V2 assets.
Background
Gauntlet's simulation engine has ingested the latest market and liquidity data. These recommendations are Gauntlet's regular parameter recommendations as part of Dynamic Risk Parameters.
Full proposal and forum discussion
Motivation and Specification
This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.
Our parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Our parameter recommendations seek to optimize for this objective function. For more details, please see Gauntlet's Parameter Recommendation Methodology and Gauntlet's Model Methodology.

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