Hello @pauljlei,
Thanks for opening this discussion here on the forum. We (Morpho Labs) would like to insist on this 2 points:
- As you mentioned, the V3 is not offering all the use cases of the V2, due to the low number of borrow markets opened at the moment and the restricted list of collateral. It is not clear that the community wants to open markets other than ETH, and the biggest stablecoins. Forcing the shutdown of the V2, which has proven to be resilient to various market conditions, could make Compound loose its organic users, which could move their positions to other markets such as Aave (or Morpho-Aave).
- The Compound ecosystem is large in terms of on-chain and off-chain integrations, dashboards, analytics… These networks take a lot of time to build, and pushing migration to Compound V3 could also fade this ecosystem away.
That’s why we are more in favor of a slower but natural migration. This means doing no change to Compound V2’s parameters for the sake of making liquidity migrate to V3, but instead gradually pushing the V3 to its full potential. We recognize the all the benefits of the V3 for the use cases it covers and are confident in the fact that concerned people will progressively migrate their positions. This is also a strategy that seems to minimize the risks associated with this migration that you mentioned.
About COMP incentives, we don’t have any strong opinions. It should be an effective way to accelerate the organic growth of Compound V3. Reducing them on Compound V2 will certainly decrease TVL, but will not necessarily “kill” the organic use.