ZRX, BAT, and WBTC Parameter Update
01Summary
Update collateral factors for ZRX, BAT, and WBTC. Lower WBTC collateral factor from 75% to 65% to mitigate protocol risk (currently 99% of protocol risk and 8x worse than 2 weeks ago), while slightly raising ZRX and BAT collateral factors to improve capital efficiency for borrowers.
- Type
- parameter change
Key changes
- WBTC collateral factor decreased from 75% to 65%(high)
- ZRX collateral factor increased to 65%(low)
- BAT collateral factor increased to 65%(low)
Notable concerns
- WBTC risk accounts for 99% of protocol risk and is 8x worse than 2 weeks ago
- Bundling of changes may increase decision complexity for voters
- Further reduction of WBTC collateral factor to 60% may be proposed if this passes
Generated by Kvorum
02Description
ZRX, BAT, and WBTC Parameter Update
This change updates the collateral requirements for three collateral assets: ZRX, BAT, and WBTC
As mentioned on the forums, WBTC collateral poses a threat to the financial health of the Compound protocol. Currently, WBTC risk is 8 times worse than it was 2 weeks ago and now accounts for 99% of the risk in the protocol across all assets. We are moving to lower the collateral factor for WBTC from 75% to 65%. This will reduce (but not remove) the aforementioned risk, and we will re-evaluate if the proposal passes before proposing to lower it further to 0.6%. If liquidity and volatility for WBTC improve, we will be sure to take that into account.
We are also changing the collateral factors for both ZRX and BAT, raising those slightly to improve capital efficiency for borrowers. We realize that bundling these changes might make the decision more complex for voters. However, these additional changes are small and were largely unopposed in the last proposal that merely failed to reach quorum amidst high gas prices.
03Mismatch analysis
The proposal describes three collateral-factor changes to the Compound Comptroller: lowering WBTC's collateral factor from 75% to 65%, and slightly raising ZRX's and BAT's collateral factors for capital efficiency. The calldata contains exactly three _setCollateralFactor calls to the same Comptroller contract, each setting the target market's collateral factor to 650000000000000000 (65% in 18-decimal fixed point). This matches the stated new WBTC value precisely. For ZRX and BAT, the description only gives a qualitative claim ('raising those slightly') without specific numbers, so the exact prior values cannot be verified from the data provided, but converging to 65% is consistent with a modest increase from typical prior levels (around 60%) and does not contradict the narrative of a small, capital-efficiency-focused adjustment. No target-address mismatches, no extra or omitted actions, and no numeric contradictions were found between the prose and the decoded actions. Because the exact prior collateral factors for ZRX/BAT aren't available to confirm the magnitude implied by 'slightly', confidence is medium rather than high, but there is no basis to flag a discrepancy under the conservative reporting standard.
Generated by Kvorum
04Actions
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCollateralFactor(address,uint256)
- Arguments
{ "0": "0x6C8c6b02E7b2BE14d4fA6022Dfd6d75921D90E4E", "1": "650000000000000000" }- Calldata
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCollateralFactor(address,uint256)
- Arguments
{ "0": "0xB3319f5D18Bc0D84dD1b4825Dcde5d5f7266d407", "1": "650000000000000000" }- Calldata
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCollateralFactor(address,uint256)
- Arguments
{ "0": "0xC11b1268C1A384e55C48c2391d8d480264A3A7F4", "1": "650000000000000000" }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
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