One thing that all participants in the recent vote seem to agree on is that changes should try to avoid increasing the quantity of liquidations users face. As users of Compound only provide one piece of identifying information - their address - it’s not clear how to contact them to make sure they are aware of these changes. I’d like to suggest a few things that we could to minimize liquidations and wanted to get feedback on these ideas.
Try to contact the users using ETH transactions. The idea here is to:
- Send a small, but strange amount of eth, e.g. .0001234 or .000420420
- Encode a message into the Hex data field that says something like “Check your WBTC borrow on COMP”
This is not a great option for obvious reasons - the user has to see the transaction and also try to parse the Hex Data. However, we’re prepared to “message” as many addresses that are at risk as time and money allows.
Update the Compound UI to notify users of the pending parameter change
- One thing that we can’t do as a community is to prevent people from opening new WBTC positions that are high risk. Maybe the Compound labs team could push a quick update to the site to warn new users of this change, you could imagine a small toast that users would see until Sunday
@getty and other community members have repeatedly espoused the virtues of WBTC borrowers - that they are sophisticated and that they manage their positions actively. I hope this is true. But we are prepared to do everything we can to try to prevent liquidations in the case this hope is even partially misplaced. No one has been liquidated yet, and I’m optimistic that the community can rally together to minimize the impact of these important changes to the protocol.