Summary
Gauntlet proposes updating the Interest Rate (IR) curves for all Stablecoin Comets to better align with prevailing market rates. Specifically, we recommend decreasing the borrow APR at the kink from 6% to 5% for Stablecoin Comets.
The recommended curves are for the stablecoin comets:
| Comet |
|---|
| Ethereum USDC |
| Ethereum USDT |
| Ethereum USDS |
| Arbitrum USDC Native |
| Arbitrum USDT |
| Base USDC Native |
| Optimism USDT |
| Optimism USDC |
| Polygon USDC |
| Polygon USDT |
| Scroll USDC |
| Parameter | Current Value | Recommended Value |
|---|
| Annual Borrow Interest Rate Base | 0.015 | 0.015 |
| Annual Borrow Interest Rate Slope Low | 0.05 | 0.04166 |
| Borrow Kink | 0.9 | 0.9 |
| Annual Borrow Interest Rate Slope High | 3.4 | 3.475 |
| Annual Supply Interest Rate Base | 0 | 0 |
| Annual Supply Interest Rate Slope Low | 0.054 | 0.04725 |
| Supply Kink | 0.9 | 0.9 |
| Annual Supply Interest Rate Slope High | 3.084 | 3.0947 |
For AERO comet:
| Parameter | Current Value | Recommended Value |
|---|
| Annual Borrow Interest Rate Base | 0.04 | 0.022 |
| Annual Borrow Interest Rate Slope Low | 0.0706 | 0.0329 |
| Borrow Kink | 0.85 | 0.85 |
| Annual Borrow Interest Rate Slope High | 15 | 3.6667 |
| Annual Supply Interest Rate Base | 0 | 0 |
| Annual Supply Interest Rate Slope Low | 0.08 | 0.04 |
| Supply Kink | 0.85 | 0.85 |
| Annual Supply Interest Rate Slope High | 11 | 2.7733 |
Motivation
- Gauntlet recommends updating the interest rate curve parameters across AERO and all Stablecoin comets to align with market demand. See the the full proposal and forum discussion here and here
Specification
The proposal updates the parameters by using the respective methods on the Configurator.
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
