Gauntlet supports onboarding sDAI with the same parameters as DAI and as collateral only. We recommend splitting proposals to onboard sDAI and proposals to change interest rate parameters for DAI and WETH to be separated.
On DAI IR Changes
- Echoing @monet-supply, increasing DAI RF from 10% to 20% on v3 may lower DAI supply rate below the current DSR, which may incentivize DAI supply withdrawal. This leads to increased risk of
- equilibrium utilization higher than Uopt for DAI, which may decrease available liquidity in the advent of liquidations.
- Raising Uopt from 80% to 90% adds risk to the above, due to less liquidatable DAI available.
On WETH IR Changes
Would you be able to provide more color on the rationale for increasing Uopt and decreasing Slope 1 for WETH and how it relates to onboarding sDAI?