Set WBTC Collateral Factor to 75%
01Summary
Proposal to increase WBTC collateral factor from 60% to 75% on Compound, citing significant growth in WBTC circulation (from $1B to $4.38B), improved liquidity across multiple DEXs and CEXs, and competitive positioning against Aave which currently has WBTC at 75% collateral factor.
- Type
- parameter change
Key changes
- WBTC collateral factor increased from 60% to 75%(high)
Notable concerns
- Proposal relies on market conditions (liquidity and WBTC circulation) that may change over time
- Competitive positioning against Aave cited as business justification rather than protocol safety metrics
Generated by Kvorum
02Description
Set WBTC Collateral Factor to 75%
This change increases the Collateral Factor of WBTC from 60% to 75%.
On October 1st, Proposal 24 was passed to raise WBTC’s Collateral Factor from 40% to 60%. According to Defi Pulse, on October 1st, there were ~$1B of WBTC in circulation. Today there are $4.38B of WBTC in circulation. In addition to having a much larger supply today, WBTC liquidity has significantly grown since Proposal 24 was passed.
Uniswap: $150M Sushiswap: $256M Balancer: $200M 1inch: $160M
In addition to growing liquidity on decentralized exchanges, centralized exchanges are continuing to adopt WBTC. Shortly after Proposal 24 passed, Coinbase added WBTC markets. As well, Binance continues to be a growing hub for WBTC/BTC trading.
With the significant increase in WBTC circulation, liquidity, and infrastructure, it is safe for Compound to increase Collateral Factor to 75%. From a growth/business standpoint, AAVE currently has its Collateral Factor set to 75%. Compound Finance needs to remain competitive to avoid losing market share.
03Mismatch analysis
The proposal description claims a single action: raising WBTC's Collateral Factor from 60% to 75%. The decoded calldata contains exactly one action, a call to _setCollateralFactor targeting a cToken market address with a new factor of 750000000000000000, which converts to 75% in standard 18-decimal fixed-point representation used by Compound. This matches the described target value exactly. There is no way to independently verify from the calldata alone that the token at the given address is WBTC's cToken or that its prior value was 60%, but this is standard for Compound-style proposals where the market address is well-known and the prior value is asserted in the narrative. No extra actions, no omitted actions, and no value mismatch are present. The single action fully implements the single claim in the description, so the proposal is consistent.
Generated by Kvorum
04Actions
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCollateralFactor(address,uint256)
- Arguments
{ "0": "0xC11b1268C1A384e55C48c2391d8d480264A3A7F4", "1": "750000000000000000" }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 660x6626…c35c | For | 126.1K | 0.00% | — | 6y ago |
| 050x05c5…00bb | For | 102.2K | 0.00% | — | 6y ago |
| 540x54a3…e189 | For | 100K | 0.00% | — | 6y ago |
| 1D0x1d29…5d1f | For | 50K | 0.00% | — | 6y ago |
| 450x458c…730e | For | 50K | 0.00% | — | 6y ago |
| EF0xeff5…27e5 | For | 50K | 0.00% | — | 6y ago |
| 5B0x5bc9…d76c | For | 29.9K | 0.00% | — | 6y ago |
| 2F0x2fd6…ba43 | For | 25K | 0.00% | — | 6y ago |
| 870x879d…0f11 | For | 22K | 0.00% | — | 6y ago |
| 140x1494…3c2b | For | 21.1K | 0.00% | — | 6y ago |
| DAdakeshi.eth0xe3c9…6b21 | For | 15.9K | 0.00% | — | 6y ago |
| 7F0x7f89…58c4 | Against | 12K | 0.00% | — | 6y ago |
| 5B0x5b97…66c2 | For | 10K | 0.00% | — | 6y ago |
| CF0xcfae…135a | For | 10K | 0.00% | — | 6y ago |
| 8D0x8d07…a265 | For | 7.5K | 0.00% | — | 6y ago |
| B00xb032…449b | For | 6.5K | 0.00% | — | 6y ago |
| TEtennisbowling.eth0xc3aa…f546 | For | 5K | 0.00% | — | 6y ago |
| B80xb8a6…6406 | For | 5K | 0.00% | — | 6y ago |
| A50xa5dc…d648 | For | 3.3K | 0.00% | — | 6y ago |
| FC0xfc04…5ac2 | For | 2.3K | 0.00% | — | 6y ago |
| 7F0x7f84…4d0b | Against | 83.1 | 0.00% | — | 6y ago |
| 030x03f0…7618 | For | 21 | 0.00% | — | 6y ago |
| 840x84e3…5a95 | For | 10.8 | 0.00% | — | 6y ago |
| E80xe8d8…3f31 | For | 1.7 | 0.00% | — | 6y ago |
| FB0xfb30…ea3f | For | 1.3 | 0.00% | — | 6y ago |
| 3B0x3b2c…e0e5 | For | 1.1 | 0.00% | — | 6y ago |
| 430x4331…6d50 | For | 1 | 0.00% | — | 6y ago |
| 1D0x1d03…02a7 | For | 0.5 | 0.00% | — | 6y ago |
| 850x8579…213a | For | 0.5 | 0.00% | — | 6y ago |
| 850x8590…1637 | For | 0.3 | 0.00% | — | 6y ago |
| JTjthrack.eth0x44c6…aabd | Against | 0.3 | 0.00% | — | 6y ago |
| 3E0x3e61…322b | For | 0.2 | 0.00% | — | 6y ago |
| D40xd4ad…ed1c | For | 0.1 | 0.00% | — | 6y ago |
| E20xe248…ee9f | For | 0 | 0.00% | — | 6y ago |
| A40xa455…eff3 | For | 0 | 0.00% | — | 6y ago |
07Forum
No forum thread is confidently linked to this proposal.
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