2nd Autonomous Proposal: This change increases the Collateral Factor of WBTC from 40% to 60%.
On July 14th, proposal 16 was passed to raise WBTC’s Collateral Factor from 0% to 40%. According to Defi Pulse, on July 14th there were ~$100M of WBTC in circulation. Today there are ~$900M of WBTC in circulation. In addition to having a much larger supply today, WBTC liquidity has significantly grown since proposal 16 was passed. Uniswap.info shows WBTC on July 14th with a total liquidity of ~$1.15M while today it has ~$230M.
With this starkly increased liquidity and demand, it makes sense to increase the WBTC collateral factor. Even with this proposed increase to 60%, the WBTC collateral factor would still be significantly under that of DAI, USDC, and ETH, which are each 75%.
We agree with the arguments from proposal 16 that this change would help diversify the set of assets available to borrow on Compound. Now that WBTC has proven itself as a useful asset on Compound, passing this proposal would be a significant improvement to the Compound ecosystem.
In order for the autonomous proposal to become a full-fledged proposal, it needs to reach 100K votes. Please delegate your votes by visiting app.compound.finance/vote and delagating your COMP to 0xdb9f80f513a3bd5ae7408484e679a1d86eee1580