Weekly Governance Update

Governance Process
5

Weekly Update - June 19, 2023

:hourglass: Key Points

  • Gauntlet shared analysis and parameter recommendations for stMatic and MaticX, clearing the way for proposals to add the two $MATIC liquid staking tokens as collateral assets to Compound v3 on Polygon.

  • Gauntlet circulated two potential proposals as options for Phase 4 of the Compound v3 migration and is asking the community to weigh in by participating in this poll.

  • Fuji Finance updated the community on their progress developing a cross-chain migration tool.

  • The Compound Developer Community Call took place Wednesday, June 14th.

:ballot_box: Proposals

  • No new or recent proposals.

:writing_hand: Forum Highlights

  • Gauntlet shared analysis and parameter recommendations for stMatic and MaticX, two different $MATIC liquid staking tokens that were proposed last month as new collateral assets for Compound v3 on Polygon. Gauntlet’s recommendations include options for both conservative and aggressive parameter settings and deferred to the community on its preference. So far, only Michigan Blockchain has weighed in, doing so in favor of the aggressive parameter settings to “enhance Compound’s competitiveness relative to AAVE.”

  • Gauntlet circulated two potential proposals as options for Phase 4 of the Compound v3 migration they’ve been administering. The first option would decrease v2 rewards and increase the v2 USDC reserve factor, while the second option would do the same but also increase v3 rewards by 200 COMP. There is currently a poll live in the forum to determine which proposal will move forward on Monday, June 26th. Gauntlet’s recommendation is to move forward with the first option, i.e. not increase v3 rewards.

  • Gauntlet posted a summary of their market risk management work with Compound in May 2023.

  • Fuji Finance provided an update on their work building a cross-chain migration tool, funded by Compound Grants. The update prompted a discussion in the forum and on the Developer Community Call about granting the Compound Timelock contract the admin-role for the cross-chain migrator as to enable future changes and add new markets in the future. Ultimately, it was decided that Fuji Finance will maintain authority over the tool.

  • Adam from Compound Labs shared more information on Compound’s prize for the ETHGlobal Waterloo hackathon.

:telephone_receiver: Developer Community Call Summary

Compound’s most recent Developer Community Call was Wednesday, June 14, 2023. Click here to listen to the recording. Here’s what was discussed:

  • Paul from Gauntlet discussed actions taken during the recent period of market volatility (e.g. actions taken to mitigate issues from Sushiswap’s price not updating in Compound v2) and provided an update on the Polygon and Arbitrum Comets. He also highlighted upcoming work from Gauntlet, including recommendations about stMatic and MaticX (see above) as well as deployments to new chains like Base.
  • Michael from OpenZeppelin provided an update on what OZ has been working on, including auditing and security monitoring. OZ collaborated with Gauntlet and others to deal with the Sushiswap situation. Michael noted that while OZ’s system to monitor similar situations worked well, there are certain improvements they will make going forward. They plan to after further share their thoughts with the community in the forum.
  • Roger from Chainlink (the oracle service that provides price data) clarified that the issue was not rooted in Chainlink, but rather the underlying data from Uniswap. This prompted agreement that there are improvements that could be made. Michael from OZ said more data would be gathered and shared with the community.
  • Nick from Rocket Pool gave an overview of Rocket Pool for the Compound community and floated the idea of $rETH - the liquid staking token - as collateral to Compound v3.
  • Aditya from Stader Labs provided an update on next steps for listing MaticX as a collateral on Compound v3 on Polygon, which is blocked by the need for Gauntlet’s parameter recommendations and OpenZeppelin audits.
  • Mark from Fuji Finance discussed their project building a cross-chain migration tool for Compound and asked for guidance on how to handle admin roles for this tool, which prompted a discussion with several community members.
  • Boardroom gave our update on Compound governance activity.
  • Adam from Compound Labs highlighted Compound Grants’ plan to host a demo day for grant projects as well as Compound’s prizes at the ETHGlobal Waterloo hackathon.

:date: Upcoming Events

ETHGlobal Waterloo is taking place this week, June 23rd through June 25th in Waterloo, Ontario. Compound is sponsoring $5,000 in prizes at the Hackathon.

:crystal_ball: Upcoming Votes

Gauntlet plans to introduce a proposal on Monday, June 26th, which will constitute Phase 4 of the Compound v3 migration. See here for more.

Quick Gov Links: Governance Overview | Governance Docs | Compound on Boardroom