Simple Summary
Gauntlet recommends the following changes to risk parameters to deprecate all active comets on Polygon (USDC and USDT) and on Unichain (USDC and WETH). These markets have seen limited adoption in the last 180 days, with borrow volume either decreasing or remaining flat. The proposed changes set all collateral supply caps to 0, reduce borrow collateral factors by 50% for all assets other than MaticX, which is set to 0, and set the supply interest rate to zero across all four comets so that all borrower-paid interest accrues to reserves during the deprecation period. Liquidation factors are left unchanged throughout.
Risk Parameters
Polygon USDC Comet
| Status | Asset | Supply Cap | Collateral Factor (CF) | Liquidation Factor (LF) |
|---|
| Current | WETH | 2,500 | 80% | 85% |
| Proposed | WETH | 0 | 40% | 85% |
| Current | WBTC | 400 | 75% | 85% |
| Proposed | WBTC | 0 | 37.5% | 85% |
| Current | WPOL | 490,731 | 65% | 80% |
| Proposed | WPOL | 0 | 32.5% | 80% |
| Current | MaticX | 238,536 | 55% | 60% |
| Proposed | MaticX | 0 | 0% | 60% |
Polygon USDT Comet
| Status | Asset | Supply Cap | Collateral Factor (CF) | Liquidation Factor (LF) |
|---|
| Current | WETH | 2,000 | 80% | 85% |
| Proposed | WETH | 0 | 40% | 85% |
| Current | WBTC | 180 | 75% | 85% |
| Proposed | WBTC | 0 | 37.5% | 85% |
| Current | WPOL | 202,246 | 65% | 80% |
| Proposed | WPOL | 0 | 32.5% | 80% |
| Current | MaticX | 161,140 | 60% | 70% |
| Proposed | MaticX | 0 | 0% | 70% |
Unichain USDC Comet
| Status | Asset | Supply Cap | Collateral Factor (CF) | Liquidation Factor (LF) |
|---|
| Current | WETH | 5,000 | 83% | 90% |
| Proposed | WETH | 0 | 41.5% | 90% |
| Current | UNI | 4,307 | 68% | 74% |
| Proposed | UNI | 0 | 34% | 74% |
Unichain WETH Comet
| Status | Asset | Supply Cap | Collateral Factor (CF) | Liquidation Factor (LF) |
|---|
| Current | wstETH | 5,000 | 90% | 93% |
| Proposed | wstETH | 0 | 45% | 93% |
| Current | weETH | 952 | 90% | 93% |
| Proposed | weETH | 0 | 45% | 93% |
| Current | WBTC | 60 | 80% | 85% |
| Proposed | WBTC | 0 | 40% | 85% |
Note: On the Unichain WETH comet, UNI, ezETH, and rsETH already carry supply caps of 0 and are effectively wound down. rsETH already sits at a 0% collateral factor and requires no further change.
Interest Rate Parameters
Across all four comets, the supply rate base is already 0%. The proposed changes set both supply rate slopes (below and above the kink) to 0% as well, so that suppliers earn no interest during the deprecation period and the full amount of borrower-paid interest accrues to protocol reserves. All borrow rate parameters and both kinks are left unchanged.
Polygon USDC Comet
| Parameter | Current | Proposed |
|---|
| Annual Borrow Rate Base | 1.50% | 1.50% |
| Annual Borrow Rate Slope Low | 2.7778% | 2.7778% |
| Borrow Kink | 90% | 90% |
| Annual Borrow Rate Slope High | 360.00% | 360.00% |
| Annual Supply Rate Base | 0% | 0% |
| Annual Supply Rate Slope Low | 3.60% | 0% |
| Supply Kink | 90% | 90% |
| Annual Supply Rate Slope High | 319.60% | 0% |
Polygon USDT Comet
| Parameter | Current | Proposed |
|---|
| Annual Borrow Rate Base | 1.50% | 1.50% |
| Annual Borrow Rate Slope Low | 2.7778% | 2.7778% |
| Borrow Kink | 90% | 90% |
| Annual Borrow Rate Slope High | 360.00% | 360.00% |
| Annual Supply Rate Base | 0% | 0% |
| Annual Supply Rate Slope Low | 3.60% | 0% |
| Supply Kink | 90% | 90% |
| Annual Supply Rate Slope High | 319.60% | 0% |
Unichain USDC Comet
| Parameter | Current | Proposed |
|---|
| Annual Borrow Rate Base | 1.50% | 1.50% |
| Annual Borrow Rate Slope Low | 5.00% | 5.00% |
| Borrow Kink | 90% | 90% |
| Annual Borrow Rate Slope High | 340.00% | 340.00% |
| Annual Supply Rate Base | 0% | 0% |
| Annual Supply Rate Slope Low | 5.40% | 0% |
| Supply Kink | 90% | 90% |
| Annual Supply Rate Slope High | 303.40% | 0% |
Unichain WETH Comet
| Parameter | Current | Proposed |
|---|
| Annual Borrow Rate Base | 1.00% | 1.00% |
| Annual Borrow Rate Slope Low | 0.5556% | 0.5556% |
| Borrow Kink | 90% | 90% |
| Annual Borrow Rate Slope High | 15.00% | 15.00% |
| Annual Supply Rate Base | 0% | 0% |
| Annual Supply Rate Slope Low | 1.50% | 0% |
| Supply Kink | 90% | 90% |
| Annual Supply Rate Slope High | 13.50% | 0% |
More details about the proposal can be found here
