Deploy Compound III on Base

Proposals
11

cWETHv3 market on Base

Following the conversations on this thread, recent community calls, Discord, and GitHub, a cWETHv3 market has been deployed to Base from this pull request.

The parameters to enable the market are being finalized on this pull request. It includes Gauntlet’s recommended risk parameters (aggressive option) and latest recommendations for the WETH market for the following assets:

  • cbETH: $14.5M supply cap (7.5K tokens), 90% CF, 93% LCF, and 2.5% liquidation fee

The community can add more liquid staking derivatives as collateral to the market once other options get supported on Base.

The interest rate model for cWETHv3 is configured to match Gauntlet’s latest recommendations for the WETH market. After the launch of the market, Gauntlet will monitor and consider recommendations to the interest rate model based on preliminary utilization & growth.

The assets and price feeds of the deployment use the following inputs:

  • The base asset, WETH, uses a constant price feed of unity in terms of ETH with 8 decimals.
  • For cbETH, a scaling price feed is used to convert the Chainlink cbETH / ETH price feed’s 18 decimals to the constant 8 decimals that Comet expects.

OpenZeppelin has completed an additional audit of the bridged governance contracts and flows. Note that the audit is for Optimism, which Base is a fork of.

The cWETHv3 market has been deployed to 0x46e6b214b524310239732D51387075E0e70970bf.

Finally, see the Initialization Proposal section below for more information about the next steps to enable the deployed market.

Initialization Proposal

To initialize the market, the deployment process is similar to the initialization of cWETHv3 on Ethereum mainnet, the primary difference being the bridging of governance actions to Base, instead of taking place directly on the governance chain (Ethereum mainnet).

The initialization proposal will take the following actions:

  1. Send a cross-chain message to Base, triggering a series of actions. These actions are to set the CometFactory for the new Comet, set the Comet configuration, deploy a new Comet implementation, set COMP as the reward token for the deployment, wrap some ETH to WETH, and transfer WETH to the cWETHv3 contract as initial reserves. The initial supply speed will be 20 COMP/day and borrow speed will be 0 COMP/day.

  2. Bridge 10 ETH from the mainnet Timelock to the Base Timelock, to be wrapped as WETH and seeded as initial reserves to the cWETHv3 market.

  3. Write the ENS TXT record v3-official-markets on v3-additional-grants.compound-community-licenses.eth containing the official markets JSON.

  4. Reduce the COMP distribution to v2 cUSDC borrowers by 20 COMP/day, so as to keep the total COMP distribution constant.

The deployment and proposal migrations have been built using the Comet scenario framework and deployed using the Comet deployment manager. The scenario checks can be seen from the proposal branch CI checks.

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