Gauntlet has proposed deprecating all active Compound V3 comets on Linea (USDC and WETH) and Mantle (USDe), citing limited adoption since deployment. The proposal sets all collateral supply caps to zero, halves collateral factors, and restructures interest rate parameters to stop reserve erosion, effectively winding down these markets in a controlled manner. The affected assets include WETH, wstETH, WBTC on Linea, and USDe on Mantle.
For Armada's crypto desk, this deprecation is a useful data point on how DeFi protocols rationalize underperforming markets. USDe and wstETH are assets that may appear in Armada counterparty portfolios or as benchmark collateral comparables. A shrinking on-chain venue for these assets reduces liquidity reference points and could affect Armada's ability to benchmark repo rates or assess liquidation depth for related collateral positions.