[Gauntlet] tBTC Risk Parameter Update: Supply Caps and Borrow Collateral Factors to 0
Gauntlet recommends setting the tBTC supply cap and borrow collateral factor to 0 on every Compound Comet where tBTC is listed, after Threshold Network paused tBTC minting and redemptions.
Gauntlet's forum post recommends setting the tBTC supply cap and borrow collateral factor to 0 on all six Comets listing tBTC (Ethereum cUSDTv3, cUSDCv3 and cWETHv3, Base cUSDCv3, Arbitrum cUSDTv3 and cUSDCv3). Liquidate collateral factors, 85% on most Comets, stay unchanged, so the post says no position becomes liquidatable from this change. Background given in the post: Threshold Network temporarily paused new BTC deposits, tBTC minting and new Bitcoin redemption requests as a precaution during security maintenance; holding, transferring and using tBTC are unaffected and no exploit has been disclosed. The post notes the redemption mechanism that supports the tBTC peg is unavailable during the pause, and that Aave froze tBTC on V3 Ethereum Core on 31 October. Exposure per Gauntlet's 31 Oct snapshot: 72 accounts supply 101.2 tBTC (about $7.8M) across the six Comets, and those accounts owe $23.1M in total, of which about $4.2M is attributed to tBTC. Effect on users: new tBTC supply is blocked, tBTC stops counting toward borrowing power, and the 24 accounts using only tBTC as collateral (all with debt) cannot withdraw it until they repay or add other collateral. Gauntlet says it will submit the on-chain proposal for the Ethereum, Base and Arbitrum Comets.
1. Send 10 USDC on Base to
0xdbe64890cbC58304815A865F63151c205F2C88B22. Email the transaction hash to saleforce@agentmail.to from the address that should get the email.