Compound: Adjust Dynamic Risk Parameters & COMP rewards logic split

Welcome back! Today I’m sharing the last two approved and passed Improvement proposals by Compound Protocol.

Dynamic Risk Parameters.

Gauntlet is requesting a streaming grant for continuous market risk management to optimize yield, capital efficiency, and mitigate depositor losses.

Supported Risk Parameters include Collateral Factor, Close Factor, Borrow Cap, Reserve Factor, and Liquidation Incentive. Gauntlet will also develop a Risk Dashboard for the community.

At the start of every quarter for one year Gauntlet will create a proposal to update the service fee payment (higher or lower) in accordance with the formula outlined in the full proposal.

Full proposal.


Voting: FOR: 1,48M COMP Against: 6,5k COMP.

Split COMP rewards distribution and bug fixes

At the moment, the COMP rewards rate for any single market is applied at the same rate for both suppliers and borrowers. This creates undesirable market conditions such as, negative interest rates when borrowing various assets.
This proposal changes the Comptroller logic to have two different COMP distribution rates for each and every market - borrow-side ( compBorrowSpeeds ) rate and supply-side ( compSupplySpeeds ) rate.

Bug Fixes.

  • Market state indices were not being set when COMP rewards are added to already active markets. [Bug 1]
  • COMP rewards were distributed for periods preceding when the distribution rate is set. [Bug 2]
  • Borrowers were having to poke their borrow to accrue rewards if they borrowed before rewards rates were set. [Bug 3]

Proposal:


Voting: FOR: 730k COMP. Against: 0k COMP