Adding COMP as an asset?

Has COMP been considered to be added as an asset? Obviously with a collateral factor of 0%. Personally I would love this, but I also think it may be a bad idea for the protocol.

Are there any guidelines on requirements to add an asset? If there isn’t it may be worthwhile to discuss what these should be to ease the many ‘what about token X’ posts that are surely coming…

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Why do you say obviously 0% collateral? The biggest issue when adding new tokens are:

  • Accurate price feed
  • Sufficient liquidity
  • General token security

Once compound transitions to the open oracle, we will have a price feed for COMP. The rest is up to the community.

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Ah, because of low liquidity you’d want to prevent liquidations as much as possible. I figured 0% collateral prevents liquidations due to the price going down. But now I see this isn’t really an issue. The real issue is a price rise and liquidators having to source COMP in a market with low liquidity. So you’re right… collateral factor isn’t so important. Now I see why sufficient liquidity is key. Thanks.

“Rule Number 4, I know you heard this before
Never get high on your own supply” -The Notorious B.I.G. from the Ten Commandments

Adding support for COMP is in line with the mission of the protocol; as with any asset, it requires a price feed (coming soon), sufficient market liquidity :white_check_mark:, and community interest (which, given the repeated chatter in Discord, seems extremely high).

The primary question that the community should ask, is how borrowed COMP could interfere (or, improve) Governance:

  • Proposals require 100k COMP to be held for the life of the proposal; this prevents flash-borrow attacks, but not borrowed COMP attacks.
  • Voting weight is measured at the beginning of a proposal; you can’t borrow COMP to sway an ongoing vote.
  • Could risks be limited with a borrowing cap?

If I had to guess, Bart’s motivation is enabling new mechanisms to short COMP. That’s not a bad thing (efficient markets are strong markets), and a borrowing market for COMP could unlock new use-cases that haven’t been considered, too.