in the COMP Everywhere proposal, we recommend that instead of relying on COMP LP Pools to process liquidations for COMP Collateral – we absorb that COMP into the reserves of each Market.
We’d like to see collateral caps for COMP set such that each market reserve can handle absorbing liquidated COMP.
This is an important design decision because listing COMP as collateral on markets that don’t have a ton of COMP liquidity, gives us an opportunity to build that liquidity through structured products.
In the forum post linked, I describe a vault strategy which is focused on building DOLA - COMP LP, and the advantages to the Compound Treasury, as well as Inverse Finance.
We need COMP listed as a default Collateral on all markets in order to initiate these strategies.