Week of September 12, 2022
Summary
The Merge was — happily! — successful, with no signs of disturbance to markets on Compound, thanks in large part to careful preparation. In other, big (non governance-related) news, Compound Treasury announced borrowing for institutions.
Proposals
Gauntlet <> Compound Renewal (125): This proposal from Gauntlet seeks to renew their twelve-month engagement with Compound. Gauntlet has been working with Compound in various ways for three years; their current engagement runs through September 27, 2022. Gauntlet describes their role as follows: “continuous market risk management to maximize capital efficiency while minimizing the risk of insolvency and liquidations to create long-term sustainable growth.” New for this engagement: Coverage of the recently initiated Compound III, and a refund model should Gauntlet’s optimizations incur losses.
“Our ultimate goal is to protect the protocol - we stand behind our work and want the community to have confidence in our recommendations.”
Vote here, beginning tomorrow.
TUSD market update proposal. @Joyce from TrueUSD has submitted for discussion a proposal for adding TUSD as a collateral asset on Compound. TUSD is an ERC-20 that describes itself as “the first independently-verified digital asset redeemable 1-for-1 for US Dollars.”
Results of community feedback on Gauntlet’s two Snapshot polls: 75% voted in favor of increasing reserve factors by 0.025 for USDT and DAI while nearly 100% voted in favor of reducing each collateral asset’s collateral factor by up to 5%.
In the Forums
Post-mortem of the cETH price-feed incident. @cylon from OpenZeppelin (a security advisor for Compound DAO) breaks down what happened and provides suggestions for going forward — which include exploring “how proposal upgrades could be rolled back more quickly for a limited time following an upgrade’s execution without going through 7-day governance.”
Normalizing ETH market post-merge. @pauljlei from Gauntlet initiates discussion on this topic, since proposal 122 mitigated cETH market risk prior to the merge. @monet-supply suggests shifting to a “jump rate” model.
There are some follow-up questions for Questbook’s delegated domain allocation proposal to the Compound Grants program.
On Twitter
@getty_hill wonders whether it’s time to push for Compound Autonomous Proposals again, given how much the DeFi space has changed.
@blockworks_ publishes an op-ed by John Morrow of Gauntlet pointing to their new advisory standard with DAOs (see proposal above): “if you are wrong, you don’t get paid.”
In Discord
Leighton asks “when do we cut all COMP V2 Distribution??? V3 COMP Distribution method is so superior.”
Matto suggests “streamling the [COMP] distribution adjustments dynamically.”
Developer Community Calls
- Calls are held every two weeks. A recording of he last one can be found here.
Join the next call on September 21 (4:30PM GMT), in Discord.
Quick Gov Links: Governance Overview | Governance Docs | Compound on Boardroom