Not sure if everybody saw this tweet from Synthetix Founder Kain Warwick regarding proposal 032, But I thought it was worth sharing here:
I voted yes on Compound proposal 032. This proposal would distribute COMP to offset losses incurred by liquidated DAI positions. I thought about this a lot over the weekend, and while I expect the proposal to fail here is my reasoning regardless. Factoring in all risk is probably the defi platform I trust most. Excluding SNX there have been times when 50% of my crypoassets have been on deposit there. I think it is one of the safest places in DeFi you can put your funds. However, there are risks, and liquidations due to anomalous prices are foremost among these. The reason I voted yes is that I want to ensure there is skin in the game for all COMP holders, so they are hyper aware that the funds on deposit are at risk, and they are responsible. Right now there is indirect alignment between COMP holders and depositors, while this proposal sets an aggressive precedent I think it is one which is unlikely to be repeated in the future if all Compound stakeholders are aligned. This is also a good initiative to restore trust. The final point I will make is that I would highly suggest the Compound community at least discuss with Chainlink, the possibility of using their oracles as a backstop. And I say this as someone who holds no LINK, but as an SNX I am holder extremely aligned with CL security.
I again want to applaud @kybx86 on the valiant effort on prop 032. While the proposal did not pass in current form, it helped to propel the conversation forward by giving us a reference point on which to base our discussions, offer alternative routes to compensation, discuss issue prioritization etc.
That said, that several notable entities who publicly shared their reasoning (i.e. Polychain, Pantera, Kain from Sythetix) all pointed at Compound’s oracle design as a key area that needs improvement, regardless of how they voted on this proposal. Obviously I am in agreement with the sentiment, and as stated before, I am looking into submitting a CAP along these lines. If anybody wants to work with me on this feel free to shoot me a message. Would love the support!