KVORUM
compoundSource: Compound governor alpha · #10

Adjusting COMP distribution speed to match Ethereum network block time and increasing higher-risk assets Reserve Factor

executedJun 25, 2020, 03:38 PM UTCby540x54a3…e189

01Summary

AISummary by Kvorumclaude-haiku-4-5

Adjust COMP distribution speed from 0.5 to 0.44 COMP per block to account for actual 13.1 second Ethereum block time (reducing daily distribution from ~3,297 to ~2,880 COMP), and increase reserve factors to 50% for BAT, REP, and ZRX to mitigate liquidation risks from COMP farming activity on these higher-risk assets.

Type
parameter change

Key changes

  • Reduce COMP distribution speed from 0.5 to 0.44 COMP per block to align with actual Ethereum block time of 13.1 seconds versus assumed 15 seconds(high)
  • Decrease daily COMP distribution from approximately 3,297 to approximately 2,880 COMP per day(high)
  • Increase reserve factor to 50% for BAT (0x6c8c6b02e7b2be14d4fa6022dfd6d75921d90e4e)(high)
  • Increase reserve factor to 50% for REP (0xb3319f5d18bc0d84dd1b4825dcde5d5f7266d407)(high)
  • Increase reserve factor to 50% for ZRX (0x158079ee67fce2f58472a96584a73c7ab9ac95c1)(high)

Notable concerns

  • BAT, REP, and ZRX are experiencing high liquidation risk due to being preferred assets for COMP farming activity
  • The 50% reserve factor increase on these assets is characterized as an 'extreme situation' response to mitigate protocol safety risks
Contracts0x3d9819210a31b4961b30ef54be2aed79b9c9cd3b0x6c8c6b02e7b2be14d4fa6022dfd6d75921d90e4e0xb3319f5d18bc0d84dd1b4825dcde5d5f7266d4070x158079ee67fce2f58472a96584a73c7ab9ac95c1
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

127 words

Adjusting COMP distribution speed to match Ethereum network block time and increasing higher-risk assets Reserve Factor

Compound distribution system expects 15 second block time on the Ethereum network, while in reality, this is 13.1~ second average https://etherscan.io/chart/blocktime

  • Current speed 0.5 COMP / block
  • Proposed speed 0.44 COMP / block

This will decrease the current 3,297~ / day distributed COMP to the expected level 2,880~ COMP / day.

Reserve factor for BAT, REP, and ZRX

  • Proposed Reserve Factor 50%

This is an extreme situation caused by the COMP distribution. Currently, these assets are preferred for those who farming COMP, these carry high liquidation risk against the protocol; therefore increasing their Reserve Factor is needed to ensure the protocol safety. discussion about this.

Forum

03Mismatch analysis

AIMismatch analysis by Kvorumclaude-sonnet-5
Material discrepancy

I compared each prose claim to the corresponding decoded call. The Reserve Factor actions (indices 1-3) match the description precisely: three markets (presumably BAT, REP, ZRX) each receive _setReserveFactor(5e17), which is exactly 50% as stated, with no unit ambiguity. However, the COMP distribution speed action (index 0) sets _setCompRate to 220000000000000000 = 0.22 COMP/block, while the description explicitly states the proposed speed is 0.44 COMP/block and even shows the daily-total math (0.44 * ~6595 blocks/day ≈ 2880 COMP/day) consistent with 0.44, not 0.22. Since both the prose and calldata express the value in the same units (COMP per block, not basis points or wei-vs-percent), this is a genuine value mismatch rather than a formatting difference — the on-chain change to emissions is twice as large as what is described. This could materially affect COMP incentive distribution beyond what voters were told, so it is flagged as a value_mismatch with high severity. Because three of four actions match perfectly and the mismatched one is directionally the same (a decrease) but numerically off by 2x, I classify the overall proposal as a material_discrepancy rather than severe, since no funds are misdirected and no control is transferred — only a rate parameter differs from its description.

Discrepancies

  • highvalue mismatch

    The description states the proposed COMP distribution speed will be 0.44 COMP/block, but the calldata sets the compRate parameter to 220000000000000000 (0.22 in 18-decimal fixed point), exactly half of the stated value. This is a real parameter set on-chain and not a unit-formatting artifact (both figures are already in COMP/block terms), so the actual emission reduction implemented is roughly twice as aggressive as what delegates are told to expect.

    “Proposed speed 0.44 COMP / block”

Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
Review the decoded actions ↗

04Actions

4 total
#0_setCompRate(uint256)chain 0x1
Target
0x3d98…cd3b
Value
0 wei
Function
_setCompRate(uint256)
Arguments
{
  "0": "220000000000000000"
}
Calldata
#1_setReserveFactor(uint256)chain 0x1
Target
0x6c8c…0e4e
Value
0 wei
Function
_setReserveFactor(uint256)
Arguments
{
  "0": "500000000000000000"
}
Calldata
#2_setReserveFactor(uint256)chain 0x1
Target
0xb331…d407
Value
0 wei
Function
_setReserveFactor(uint256)
Arguments
{
  "0": "500000000000000000"
}
Calldata
#3_setReserveFactor(uint256)chain 0x1
Target
0x1580…95c1
Value
0 wei
Function
_setReserveFactor(uint256)
Arguments
{
  "0": "500000000000000000"
}
Calldata

05Tally

Summed from votes

Voters114
VP participating1.4M
Outcome (current)For
Current support86.4%

06Voters

114 total
Filter:
VoterChoice% of totalRationale
F20xf25f…197fFor345.1K24.87%—7y ago
ED0xed40…08ffFor325.8K23.48%—7y ago
A10xa1b6…0241Against111.1K8.01%—7y ago
AC0xac57…faf6For106.8K7.70%—7y ago
7E0x7e4a…19faFor100K7.21%—7y ago
540x54a3…e189For100K7.21%—7y ago
1D0x1d29…5d1fFor50K3.60%—7y ago
660x6626…c35cAgainst40K2.88%—7y ago
870x879d…0f11For30.2K2.17%—7y ago
D00xd061…1fb1Against28K2.02%—7y ago
2F0x2fd6…ba43For25K1.80%—7y ago
B00xb032…449bFor24.1K1.74%—7y ago
8E0x8e97…2bffFor17.5K1.26%—7y ago
E50xe5a5…beb9For15K1.08%—7y ago
870x8703…87beFor12.5K0.90%—7y ago
5B0x5b97…66c2For10.2K0.73%—7y ago
CF0xcfae…135aFor10K0.72%—7y ago
A80xa8c6…3985Against10K0.72%—7y ago
TEtennisbowling.eth0xc3aa…f546For5K0.36%—7y ago
DAdakeshi.eth0xe3c9…6b21For5K0.36%—7y ago
B80xb8a6…6406For5K0.36%—7y ago
8F0x8fe1…572dFor4.7K0.34%—7y ago
A50xa5dc…d648For3.3K0.23%—7y ago
FC0xfc04…5ac2For2.3K0.17%—7y ago
AGageshooter.eth0x0835…693cFor323.90.02%—7y ago
DC0xdc52…8b35For174.50.01%—7y ago
H0h0neybad9er.eth0x26a2…4cbeFor108.80.01%—7y ago
CD0xcd7f…61c3For80.70.01%—7y ago
FC0xfc8c…e162Against50.90.00%—7y ago
2F0x2fa2…47b8For500.00%—7y ago
A80xa83c…acdbFor40.20.00%—7y ago
540x54ed…16c2For24.90.00%—7y ago
7F0x7f84…4d0bFor23.20.00%—7y ago
540x5472…f3aeAgainst21.40.00%—7y ago
A10xa175…80ccFor15.50.00%—7y ago
ED0xed69…533bFor14.80.00%—7y ago
860x8692…168dFor120.00%—7y ago
940x947e…b647For11.60.00%—7y ago
0E0x0e29…c535For11.10.00%—7y ago
880x8893…d2ceFor9.80.00%—7y ago
MAmaruman.eth0x371d…0f1eFor9.10.00%—7y ago
DC0xdc1e…654dFor7.40.00%—7y ago
600x60c7…5af2Against5.60.00%—7y ago
B60xb61c…776fAgainst5.30.00%—7y ago
100x10aa…5da8Against5.20.00%—7y ago
AF0xaf7d…a471For5.10.00%—7y ago
800x80f5…6204For5.10.00%—7y ago
950x9591…f85eAgainst3.80.00%—7y ago
460x4654…1ff8For30.00%—7y ago
900x9073…e9ccFor2.50.00%—7y ago
Showing 50

07Forum

No forum thread is confidently linked to this proposal.