Adjusting COMP distribution speed to match Ethereum network block time and increasing higher-risk assets Reserve Factor
01Summary
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
Generated by Kvorum
02Description
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.
03Mismatch analysis
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
04Actions
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCompRate(uint256)
- Arguments
{ "0": "220000000000000000" }- Calldata
- Target
- 0x6c8c…0e4e
- Value
- 0 wei
- Function
- _setReserveFactor(uint256)
- Arguments
{ "0": "500000000000000000" }- Calldata
- Target
- 0xb331…d407
- Value
- 0 wei
- Function
- _setReserveFactor(uint256)
- Arguments
{ "0": "500000000000000000" }- Calldata
- Target
- 0x1580…95c1
- Value
- 0 wei
- Function
- _setReserveFactor(uint256)
- Arguments
{ "0": "500000000000000000" }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| F20xf25f…197f | For | 345.1K | 24.87% | — | 7y ago |
| ED0xed40…08ff | For | 325.8K | 23.48% | — | 7y ago |
| A10xa1b6…0241 | Against | 111.1K | 8.01% | — | 7y ago |
| AC0xac57…faf6 | For | 106.8K | 7.70% | — | 7y ago |
| 7E0x7e4a…19fa | For | 100K | 7.21% | — | 7y ago |
| 540x54a3…e189 | For | 100K | 7.21% | — | 7y ago |
| 1D0x1d29…5d1f | For | 50K | 3.60% | — | 7y ago |
| 660x6626…c35c | Against | 40K | 2.88% | — | 7y ago |
| 870x879d…0f11 | For | 30.2K | 2.17% | — | 7y ago |
| D00xd061…1fb1 | Against | 28K | 2.02% | — | 7y ago |
| 2F0x2fd6…ba43 | For | 25K | 1.80% | — | 7y ago |
| B00xb032…449b | For | 24.1K | 1.74% | — | 7y ago |
| 8E0x8e97…2bff | For | 17.5K | 1.26% | — | 7y ago |
| E50xe5a5…beb9 | For | 15K | 1.08% | — | 7y ago |
| 870x8703…87be | For | 12.5K | 0.90% | — | 7y ago |
| 5B0x5b97…66c2 | For | 10.2K | 0.73% | — | 7y ago |
| CF0xcfae…135a | For | 10K | 0.72% | — | 7y ago |
| A80xa8c6…3985 | Against | 10K | 0.72% | — | 7y ago |
| TEtennisbowling.eth0xc3aa…f546 | For | 5K | 0.36% | — | 7y ago |
| DAdakeshi.eth0xe3c9…6b21 | For | 5K | 0.36% | — | 7y ago |
| B80xb8a6…6406 | For | 5K | 0.36% | — | 7y ago |
| 8F0x8fe1…572d | For | 4.7K | 0.34% | — | 7y ago |
| A50xa5dc…d648 | For | 3.3K | 0.23% | — | 7y ago |
| FC0xfc04…5ac2 | For | 2.3K | 0.17% | — | 7y ago |
| AGageshooter.eth0x0835…693c | For | 323.9 | 0.02% | — | 7y ago |
| DC0xdc52…8b35 | For | 174.5 | 0.01% | — | 7y ago |
| H0h0neybad9er.eth0x26a2…4cbe | For | 108.8 | 0.01% | — | 7y ago |
| CD0xcd7f…61c3 | For | 80.7 | 0.01% | — | 7y ago |
| FC0xfc8c…e162 | Against | 50.9 | 0.00% | — | 7y ago |
| 2F0x2fa2…47b8 | For | 50 | 0.00% | — | 7y ago |
| A80xa83c…acdb | For | 40.2 | 0.00% | — | 7y ago |
| 540x54ed…16c2 | For | 24.9 | 0.00% | — | 7y ago |
| 7F0x7f84…4d0b | For | 23.2 | 0.00% | — | 7y ago |
| 540x5472…f3ae | Against | 21.4 | 0.00% | — | 7y ago |
| A10xa175…80cc | For | 15.5 | 0.00% | — | 7y ago |
| ED0xed69…533b | For | 14.8 | 0.00% | — | 7y ago |
| 860x8692…168d | For | 12 | 0.00% | — | 7y ago |
| 940x947e…b647 | For | 11.6 | 0.00% | — | 7y ago |
| 0E0x0e29…c535 | For | 11.1 | 0.00% | — | 7y ago |
| 880x8893…d2ce | For | 9.8 | 0.00% | — | 7y ago |
| MAmaruman.eth0x371d…0f1e | For | 9.1 | 0.00% | — | 7y ago |
| DC0xdc1e…654d | For | 7.4 | 0.00% | — | 7y ago |
| 600x60c7…5af2 | Against | 5.6 | 0.00% | — | 7y ago |
| B60xb61c…776f | Against | 5.3 | 0.00% | — | 7y ago |
| 100x10aa…5da8 | Against | 5.2 | 0.00% | — | 7y ago |
| AF0xaf7d…a471 | For | 5.1 | 0.00% | — | 7y ago |
| 800x80f5…6204 | For | 5.1 | 0.00% | — | 7y ago |
| 950x9591…f85e | Against | 3.8 | 0.00% | — | 7y ago |
| 460x4654…1ff8 | For | 3 | 0.00% | — | 7y ago |
| 900x9073…e9cc | For | 2.5 | 0.00% | — | 7y ago |
07Forum
No forum thread is confidently linked to this proposal.
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