COMP as Collateral is currently only available on Mainnet on two markets:
- USDT Supply Cap is set to $7.65M – and currently holds $2.02M in COMP.
- USDC Supply Cap is set to $7.65M – but this market currently holds $34.7M in COMP.
I’d like to initiate a proposal to increase supply caps on the USDC & USDT Markets to $50M.
Rationale:
One of the main purposes for using COMP as Collateral is so that the Compound Treasury and holders, can access yield opportunities, without selling COMP.
$34.7M deposited on a market with a $7.65M supply cap indicates demand, and a need for Gauntlet to advise on supply caps – for Mainnet COMP listings, and COMP Everywhere.
When Compound receives liquidity deals, we need the flexibility to manufacture borrowing demand by building Structured Products which use COMP as collateral.
We need to address the availability of COMP as Collateral, and receive guidance on supply caps so that yield and arbitrage strategies can be built across ecosystems, and have campaigns formed around them – This means more yield for the Compound Treasury, and more opportunities for COMP Holders.
Gauntlet is busy, but if we could take one step at a time, we ought to address the demand for COMP on the USDC Mainnet Market, and fix this discrepancy between the stated Supply Cap & Amount Deposited.
Raising Supply Caps to $50M on the USDC & USDT Mainnet Markets would solve this issue, and give space for Gauntlet to provide recommendations for supply caps for COMP Everywhere.