Adding COMP as an asset?

New Markets
5

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.

5 Likes