Gauntlet proposes deprecating Compound’s Ethereum WBTC market
Gauntlet proposes deprecating Compound's Ethereum WBTC market due to low activity and concentrated supply; the market held 13.42 WBTC on October 29, 2026.
Gauntlet published a governance proposal on October 29, 2026 calling for the deprecation of Compound’s Ethereum WBTC Comet market at0xe85D…9293. At that date, the market held 13.42 WBTC supplied by 37 accounts, worth roughly $1.04 million.
Borrow collateral factors would go to 0% for all four listed collateral assets: USDC$0.9997▲0.02%, USDT$0.9991▲0.01%, LBTC, and pumpBTC. The remaining non-zero supply caps for USDC and USDT would also be zeroed out. LBTC and pumpBTC already had their supply caps set to 0 back in May 2026.
Supplier concentration is a notable feature of the proposal. One account holds 10.20 WBTC — 76.01% of the market’s entire supplied balance, leaving the other 36 accounts sharing the remaining 23.99%.
No outstanding borrows have existed since October 6, 2026, while total collateral supplied across all assets is below $10. Gauntlet points to the market’s low activity, concentrated supply and negligible reserve growth.
The contrast with the market’s earlier activity is stark. WBTC supplied peaked at 102.8 WBTC in December 2025; by October 29, 2026 that figure was 13.42 WBTC, a decline of 89.38 WBTC, or about 86.95%. Peak borrows hit 8.87 WBTC in August 2026. Average utilization over the prior 180 days was 17.3%, with a maximum of 30.7%, against a 6.1% average across the full period since launch. Net reserve growth since launch: approximately 0.0023 WBTC.
The proposal follows earlier Compound deprecations of Linea/Mantle and Polygon/Unichain markets. Those wind-downs cut borrow collateral factors by 50% to keep existing borrowers from being pushed into liquidation. In this proposal, the borrow collateral factors would instead be set to 0% for all four assets from the outset, alongside the supply-cap changes.
The practical consequence for any future borrower using USDC, USDT, LBTC, or pumpBTC as collateral in this Comet: if the proposal passes, the market would offer no borrowing capacity at all.
Ethereum was trading at $2,235.61 on October 30, down 4.2% over 24 hours, according to CoinGecko.
Marcus Feld
Marcus Feld is CoinScoop's DeFi and on-chain analyst. He digs into L2 activity, stablecoin flows and protocol revenue, translating raw chain data into plain-English calls.