Summary
Given the declines in DEX liquidity for CRV and other associated risk factors for CRV, Gauntlet recommends reducing the LT and debt ceiling for CRV on Ethereum v3.
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We recommend reducing CRV LT from 61% to 41% and the LTV from 55% to 35%.
- As of 8/3, this does not cause accounts to become liquidatable.
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With expediency in mind, we recommend to also reduce debt ceiling from $20m to $5m due to low usage.
- Currently, there is $65k / $20m of the debt ceiling used.
Next steps
Due to various risk factors associated with CRV, we recommend moving directly to AIP on August 4th.
We welcome community feedback.
7 Likes
As discussed, we’re aligned here and support moving directly to AIP.
2 Likes
We are supportive of this proposal and being direct-to-AIP.
2 Likes
Gauntlet recommendation to lower CRV LT/LTV on v3 Polygon
Summary
Given the declines in DEX liquidity for CRV and other associated risk factors for CRV, Gauntlet recommends reducing the LT, LTV for CRV on Polygon v3.
For expediency purposes and to prevent excess forced liquidations, we recommend reducing CRV LT from 75% to 65% and the LTV from 70% to 35%.
- As of August 4, this causes 4 accounts to be liquidatable.
| user_address |
supply_balance_usd |
borrow_balance_usd |
hf |
hf_new |
supplied_symbols |
borrowed_symbols |
orig_lt |
new_lt |
| 0x56df4b7996a0a96e09d31bd69d95fd29d0a2b3bd |
5031 |
4158 |
1.00 |
0.97 |
[‘USDC’, ‘CRV’] |
[‘USDT’, ‘WBTC’] |
0.75 |
0.65 |
| 0xf36375ef8ef450476541f6326631cac44f9f0a49 |
65 |
47 |
1.05 |
0.99 |
[‘USDC’, ‘WETH’, ‘DAI’, ‘WBTC’, ‘CRV’, ‘WMATIC’] |
[‘DAI’, ‘WBTC’, ‘CRV’, ‘WMATIC’] |
0.75 |
0.65 |
| 0x68a4e84fec63e80b3978a69d64a09fd91ab16a59 |
5 |
3 |
1.15 |
0.99 |
[‘CRV’] |
[‘DAI’] |
0.75 |
0.65 |
| 0x0d004dc793b724490b192002cd76ec0cf43ad87c |
3 |
1 |
1.00 |
0.93 |
[‘WMATIC’, ‘CRV’] |
[‘EURS’] |
0.75 |
0.65 |
Reducing LT further may cause user 0x60a6d69802239e8678f35cf3cff8af6d64ab4088 to be liquidated. This user has the following positions.
- Supply: $240k CRV, $230k USDC, $30k WMATIC, $15k WBTC
- Borrow: $280k USDT and $97k USDC
With the above CRV LT reduction to 65%, the user’s HF will become 1.05. Given the currently DEX liquidity on Polygon and the fact that the user supplies a roughly equal amount of USDC and CRV, lowering the user’s buffer towards liquidation should not cause excess risk.
Next steps
We will combine the LT, LTV and debt ceiling reduction on v3 Ethereum and Polygon in one AIP. We welcome community feedback and once @ChaosLabs confirms support for both recommendations, we will move directly to AIP on Aug 4.
1 Like
We support this proposal.
The proposal aligns with Chaos’ strategy to incrementally reduce CRV LTs, which we started implementing on the V3 Polygon market a few weeks ago here.
The AIP has been deployed - AIP-288