Summary
Gauntlet supports the proposed parameters, which offer room for growth while balancing out risks associated with newer deployments. There is strong liquidity on Quickswap and Balancer relative to the size of Polygon zkEVM.
We have a few additional recommendations.
- We recommend listing WSTETH at launch as well, with the below parameters.
- We recommend lowering WETH Base to 0% and Slope 1 to 3.3% to accomodate for WSTETH recursive borrowing strategies.
Recommended Initial Parameters
| Risk Parameter | WETH | USDC | MATIC | WSTETH |
|---|---|---|---|---|
| Isolation Mode | NO | NO | NO | NO |
| Enable Borrow | YES | YES | YES | YES |
| Borrowable in Isolation | NO | YES | NO | NO |
| Enable Collateral | YES | YES | YES | YES |
| Emode Category | ETH | N/A | N/A | ETH |
| Loan To Value | 80% | 77% | 68% | 71% |
| Liquidation Threshold | 82.5% | 80% | 73% | 76% |
| Liquidation Bonus | 5% | 5.00% | 10.00% | 6% |
| Reserve Factor | 15% | 10% | 20% | 15% |
| Liquidation Protocol Fee | 10.00% | 10.00% | 10.00% | 10% |
| Borrow Cap | 280 | 1.26m | 375k | 25 |
| Supply Cap | 350 | 1.4m | 500k | 250 |
| Debt Ceiling | N/A | N/A | N/A | N/A |
| uOptimal | 80% | 90% | 75% | 45% |
| Base | 0% | 0% | 0% | 0% |
| Slope1 | 3.3% | 4% | 6.1% | 7% |
| Slope2 | 80% | 60% | 100% | 300% |