Simple Summary
Gauntlet recommends setting the borrow collateral factor (BCF) to 0 for every collateral asset on the deprecated Linea cUSDCv3, Linea cWETHv3, and Mantle cUSDEv3 Comets. This stops all new borrowing on these markets. Existing positions keep working: users can still repay debt and be liquidated.
Motivation
These Comets were deprecated in an earlier proposal. That proposal set collateral supply caps to 0, cut borrow collateral factors by 50%, and updated interest rate parameters. Setting the remaining borrow collateral factors to 0 is the next step in winding down these markets. It removes all remaining borrowing capacity so outstanding exposure can only go down over time.
Specification
Only borrowCollateralFactor changes. Liquidate collateral factors, liquidation factors, supply caps, and interest rate parameters are unchanged.
Linea cUSDCv3
| Asset | Current BCF | Proposed BCF |
|---|
| WETH | 42% | 0% |
| wstETH | 41% | 0% |
| WBTC | 40% | 0% |
Linea cWETHv3
| Asset | Current BCF | Proposed BCF |
|---|
| ezETH | 90% | 0% |
| wstETH | 45% | 0% |
| WBTC | 40% | 0% |
| weETH | 45% | 0% |
Linea cWETHv3 wrsETH already has a borrow collateral factor of 0% and is not included.
Mantle cUSDEv3
| Asset | Current BCF | Proposed BCF |
|---|
| mETH | 40% | 0% |
| WETH | 41% | 0% |
| FBTC | 39% | 0% |
Proposal Actions
The proposal sends two cross-chain messages from Ethereum mainnet:
- Linea (via the Linea bridge): calls
Configurator.updateAssetBorrowCollateralFactor(comet, asset, 0) for the 7 Linea assets listed above, then CometProxyAdmin.deployAndUpgradeTo(configurator, comet) for Linea cUSDCv3 and Linea cWETHv3.
- Mantle (via the Mantle bridge): calls
Configurator.updateAssetBorrowCollateralFactor(comet, asset, 0) for the 3 Mantle assets listed above, then CometProxyAdmin.deployAndUpgradeTo(configurator, comet) for Mantle cUSDEv3.
User Impact
- No new borrows can be opened on these Comets.
- Existing borrowers cannot increase their debt or withdraw collateral until they have fully repaid their debt.
- Repayments and liquidations work as before, because liquidate collateral factors and liquidation factors are unchanged.
For the full analysis and risk considerations, see the forum post: Set Borrow Collateral Factors to 0 on Deprecated Comets (Linea, Ronin, Mantle, Scroll, Unichain)
