Community member @aaaaaaaaaaaaa posted the in the goverance channel of discord: “I think governance voters should demand some better justification for this (and any) change than just your personal beliefs. At a minimum some objective data on why this is safe should be required”
First off, I think proposals are based on personal beliefs and understandings of the protocol/ecosystem. I also believe that voters should vote on their personal beliefs. Because I am the one submitting the proposal, I think the onus on justifying the change is on me. On the same note, it is up to voters to do their own research and ideally independently arrive at their own conclusion.
I appreciate @aaaaaaaaaaaaa criticism, and I will strive to do better.
On that note, let’s talk about USDC.
There are currently 2.8B USDC in existence.
14.5% (408M) of the supply is in Makerdao (Vat).
11.3% (320M) of the supply is in Uniswap’s ETH/USDC pool.
6.7% (136M) of the supply is in BarnBridge.
3.2% (90M) of the supply is in the Curve DAI/USDC/USDT pool.
2.9% (82M) of the supply is in Compound.
1.8% (51M) of the supply is in Aave.
0.80% (22M) of the supply is in Uniswap’s WBTC/USDC pool.
There are many other ETH/USDC pools on other platforms and altcoin/USDC pools. I recommend looking at the top token holders of USDC to see the liquidity.
The circulating supply of USDC has skyrocketed this year.
YTD the supply is up 548% and the unique holders are up 388%.
With 1inch and Matcha, anyone can see the liquidity that exists right now for any market.
DAI-USDC: better liquidity on 1inch or Match than any exchange.
ETH-USDC: 0.20%-0.40% slippage on $1m trade. (Still better than a lot of exchanges when counting fees)
WBTC-USD: 0.40%-0.80% slippage on $1m trade.
The onchain liquidity that exists today is significantly higher than when Compound v2 launched. None of this accounts for the liquidity that large liquidators have deployed or can deploy quickly. Historically liquidators used their own funds to take part, but thriving AMMs and money markets like Compound & Aave have changed the liquidity landscape and made algorithmic liquidators more tenablele.
USDC liquidity (and many others) has improved significantly. With all of this evidence, it is time to vote to increase the CF for USDC.
Here is a list of resources to do your own research: