Simple Summary

A proposal from Gauntlet to adjust 7 Compound v2 risk parameters for Phase 3 of the Compound v2 Deprecation.

Gauntlet recommends the following changes:

• Decrease AAVE Collateral Factor from 68% to 63%
• Decrease COMP Collateral Factor from 55% to 50%
• Decrease LINK Collateral Factor from 74% to 69%
• Decrease MKR Collateral Factor from 68% to 63%
• Decrease SUSHI Collateral Factor from 62% to 57%
• Decrease YFI Collateral Factor from 70% to 65%
• Decrease ZRX Collateral Factor from 60% to 55%

For more details, see the full forum post here.

Motivation

In this September 2022 snapshot vote, the community voted that each asset’s Collateral Factor may be reduced by an absolute percentage of up to 5%. After our analysis, Gauntlet recommends this max 5% decrease for each lowly supplied collateral asset in order to further deprecate the v2 market.

Full proposal and forum discussion

Specification

The proposal updates the parameters using the _setCollateralFactor methods of the relevant cToken contracts.

By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos.