@robinnagpal and @mexilc
COMP has already been distributed.
The risk we are taking is that the Reserves will absorb liquidated COMP, and these reserves will be built up by liquidating other assets.
The benefits are that COMP whales such as AlphaGrowth, or the Treasury, or the Grants program, or large holders will be able to leverage COMP to build liquidity, and arbitrage rates accross chains.
Over-Utilized Markets, are causing protocols to unwind their positions, and lack of Liquidity on L2s, is due to a lack of LP Strategy, as well as a lack of assets to build up those strategies.
Adding COMP as collateral on all markets solves both problems, while making COMP a more attractive asset for people to hold.
The question of Risk – is probably one of appropriate Supply Caps, and Liquidation Penalties.