Compound V2 -> V3 Migration (Phase 2)
01Summary
Phase 2 of Compound V2 to V3 migration reducing COMP rewards on V2 (USDC and DAI supply/borrow) by 50 daily tokens each, while increasing V3 USDC borrow rewards by 200 daily tokens to incentivize migration to V3.
- Type
- parameter change
Key changes
- Decrease V2 USDC supply COMP rewards from 211.20 to 161.20 daily (50 token reduction)(high)
- Decrease V2 USDC borrow COMP rewards from 211.20 to 161.20 daily (50 token reduction)(high)
- Decrease V2 DAI supply COMP rewards from 211.20 to 161.20 daily (50 token reduction)(high)
- Decrease V2 DAI borrow COMP rewards from 211.20 to 161.20 daily (50 token reduction)(high)
- Increase V3 USDC borrow COMP rewards from 281.41 to 481.41 daily (200 token increase)(high)
- Deploy and upgrade Configurator proxy for V3 USDC market(medium)
Notable concerns
- This is a migration incentive proposal that reduces V2 rewards while increasing V3 rewards; users in V2 will receive fewer incentives to encourage movement to V3
Generated by Kvorum
02Description
Compound V2 -> V3 Migration (Phase 2)
Simple Summary
Gauntlet provides this proposal for Phase 2 of the Compound V2 -> V3 Migration.
Background
Following community feedback, please see the below Phase 2 plan to align with the community's strategic preference. See the forum post for more detail.
- Decrease v2 daily USDC supply COMP rewards from 211.20 to 161.20 (-50)
- Decrease v2 daily USDC borrow COMP rewards from 211.20 to 161.20 (-50)
- Decrease v2 daily DAI supply COMP rewards from 211.20 to 161.20 (-50)
- Decrease v2 daily DAI borrow COMP rewards from 211.20 to 161.20 (-50)
- Increase v3 daily USDC borrow COMP rewards from 281.41 to 481.41 (+200)
Specification
This proposal implements a number of changes using several different contracts:
- v2 daily COMP rewards are updated using
_setCompSpeedson theComptrollercontract - v3 USDC daily COMP rewards are updated using
setBaseTrackingBorrowSpeedon theConfiguratorcontract
By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos.
03Mismatch analysis
The proposal describes five parameter changes: four v2 Comptroller COMP speed decreases (USDC/DAI, supply/borrow, 211.20→161.20 daily) and one v3 Comet borrow speed increase (USDC, 281.41→481.41 daily). Action 0 (_setCompSpeeds) sets both supply and borrow speeds for the two listed cTokens (cUSDC and cDAI) to 0.0223888... COMP/block, which converts to ~161.2 COMP/day at standard ~7200 blocks/day, matching all four claimed v2 reductions exactly. Action 1 (setBaseTrackingBorrowSpeed) targets the Configurator contract for the cUSDCv3 proxy with a new speed value whose magnitude is consistent with the claimed increase to 481.41 daily COMP. Action 2 (deployAndUpgradeTo) is the standard follow-up call required to push a Configurator change live on the Comet proxy — this is routine boilerplate for Compound V3 parameter updates and is not separately described in the prose, which is expected and not a red flag. No target mismatches, no unexplained transfers, and no value discrepancies were found after unit conversion. The description accurately reflects the contracts used (Comptroller and Configurator) and the direction/magnitude of each change. Confidence is high because the calldata values align closely with the stated daily reward figures once standard block-time conversions are applied.
Generated by Kvorum
04Actions
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCompSpeeds(address[],uint256[],uint256[])
- Arguments
{ "cTokens": [ "0x39AA39c021dfbaE8faC545936693aC917d5E7563", "0x5d3a536E4D6DbD6114cc1Ead35777bAB948E3643" ], "borrowSpeeds": [ "22388888888888888", "22388888888888888" ], "supplySpeeds": [ "22388888888888888", "22388888888888888" ] }- Calldata
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- setBaseTrackingBorrowSpeed(address,uint64)
- Arguments
{ "cometProxy": "0xc3d688B66703497DAA19211EEdff47f25384cdc3", "newBaseTrackingBorrowSpeed": "5571875000000" }- Calldata
- Target
- 0x1ec6…8779
- Value
- 0 wei
- Function
- deployAndUpgradeTo(address,address)
- Arguments
{ "cometProxy": "0xc3d688B66703497DAA19211EEdff47f25384cdc3", "configuratorProxy": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3" }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| EA0xea6c…3bf7 | For | 331K | 35.00% | — | 4y ago |
| 810x8169…9806 | For | 101K | 10.68% | — | 4y ago |
| 8D0x8d07…a265 | For | 70K | 7.40% | — | 4y ago |
| 7D0x7d1a…b27f | For | 65K | 6.87% | — | 4y ago |
| 470x47c1…4770 | For | 50K | 5.29% | — | 4y ago |
| B40xb49f…7948 | For | 50K | 5.29% | — | 4y ago |
| 130x13bd…8548 | For | 50K | 5.29% | — | 4y ago |
| DC0xdc1f…e432 | For | 50K | 5.29% | — | 4y ago |
| 880x88fb…3981 | For | 42.7K | 4.52% | — | 4y ago |
| 2B0x2b38…bf33 | For | 32.5K | 3.44% | — | 4y ago |
| B90xb933…8dd1 | For | 27.5K | 2.91% | — | 4y ago |
| E40xe459…e666 | For | 26K | 2.75% | — | 4y ago |
| DAdakeshi.eth0xe3c9…6b21 | For | 21.3K | 2.25% | — | 4y ago |
| 0A0x0a09…b92e | For | 15K | 1.59% | — | 4y ago |
| 230x2380…b5f2 | For | 13.4K | 1.42% | — | 4y ago |
| 660x66cd…65f9 | For | 145.7 | 0.02% | — | 4y ago |
| 840x84e3…5a95 | For | 39.6 | 0.00% | — | 4y ago |
| E50xe5b3…ffa7 | For | 14.2 | 0.00% | — | 4y ago |
| 310x31b6…f61b | For | 13.3 | 0.00% | — | 4y ago |
| 740x7446…ef9f | For | 5.2 | 0.00% | — | 4y ago |
| 390x3939…52f8 | For | 3.3 | 0.00% | — | 4y ago |
| BF0xbf4c…5a7c | For | 3.1 | 0.00% | — | 4y ago |
| 270x277d…7b07 | For | 2.9 | 0.00% | — | 4y ago |
| 190x196a…411f | For | 1.6 | 0.00% | — | 4y ago |
| 390x39c3…1390 | Abstain | 1.4 | 0.00% | — | 4y ago |
| 8B0x8bc8…7276 | For | 1.1 | 0.00% | — | 4y ago |
| 6C0x6cc8…903c | For | 1 | 0.00% | — | 4y ago |
| 860x8655…6267 | For | 1 | 0.00% | — | 4y ago |
| 810x81dd…b9ad | For | 1 | 0.00% | — | 4y ago |
| 2B0x2ba3…4a2d | For | 1 | 0.00% | — | 4y ago |
| 030x0389…72c6 | For | 0.8 | 0.00% | — | 4y ago |
| DA0xda8c…3cf2 | For | 0.7 | 0.00% | — | 4y ago |
| C30xc34a…68c2 | For | 0.7 | 0.00% | — | 4y ago |
| E30xe35d…a831 | For | 0.5 | 0.00% | — | 4y ago |
| C00xc04a…9a11 | For | 0.5 | 0.00% | — | 4y ago |
| 0F0x0fac…bdbc | For | 0.5 | 0.00% | — | 4y ago |
| 070x0745…042e | For | 0.3 | 0.00% | — | 4y ago |
| 8D0x8d52…6f34 | For | 0.3 | 0.00% | — | 4y ago |
| 7E0x7eb1…feca | For | 0.2 | 0.00% | — | 4y ago |
| EE0xee22…8aab | For | 0.2 | 0.00% | — | 4y ago |
| FA0xfa1f…eaae | For | 0.2 | 0.00% | — | 4y ago |
| 300x3088…c7e5 | For | 0.2 | 0.00% | — | 4y ago |
| 480x48b5…6950 | For | 0.1 | 0.00% | — | 4y ago |
| F90xf915…6747 | For | 0.1 | 0.00% | — | 4y ago |
| A20xa2b3…fe3f | For | 0.1 | 0.00% | — | 4y ago |
| 480x48a9…feb7 | For | 0.1 | 0.00% | — | 4y ago |
| 6B0x6b75…9a2a | For | 0.1 | 0.00% | — | 4y ago |
| D60xd609…3607 | For | 0.1 | 0.00% | — | 4y ago |
| F80xf84c…9a63 | For | 0.1 | 0.00% | — | 4y ago |
| AF0xaf76…08c6 | For | 0 | 0.00% | — | 4y ago |
07Forum
- Compound V2 to V3 Migration (Phase 2) ↗discourse · high confidence
Arguments for
- Continuing the migration strategy outlined in CIP-3 with higher incentives makes sense given healthy utilization rates and will encourage users to migrate from v2 to the superior net borrow APY offered by v3.— rleshner, WintermuteGovernance
- Option 1 offers a significant net borrow APY improvement for v3 USDC (+2.73%) compared to v2 alternatives, which should attract new users and incentivize existing v2 users to migrate.— WintermuteGovernance
- If Compound's strategic direction is to eventually sunset v2 and focus on v3 as a differentiated product, shifting distributions to v3 aligns with that goal and directs incentives toward quality users who value v3's collateral isolation features.— Sirokko
Arguments against
None surfaced.
Unresolved concerns
- Despite improved net borrow APY in v3, top non-recursive borrowers have not migrated to v3 after the first migration phase, suggesting factors beyond reward incentives may be blocking migration (such as dependent protocol integrations or user comfort with v2).— nlord, Sirokko
- The strategic differentiation between v2 and v3 is unclear—v3 appears to be a different product rather than a development of v2, raising questions about whether incentivizing migration is the right approach versus developing v2-type functionality.— Sirokko
- It is uncertain whether even the significantly improved incentives in Option 1 will actually move users to migrate, or whether the migration will remain minimal despite the reward increases.— WintermuteGovernance
Notable participants
- nlordProposer and Gauntlet representative presenting the migration analysis, data, and both options to the community.
- rleshnerEarly supporter advocating for Option 1 and continuance of the CIP-3 migration strategy despite slower-than-expected adoption.
- WintermuteGovernanceSupporter of Option 1 who emphasizes the improved net borrow APY incentives and expectation of eventual migration once users seriously consider the benefits.
- pauljleiFacilitator who initiated the community poll to gauge sentiment between Option 1 and Option 2.
- SirokkoThoughtful contributor who questioned the strategic vision behind the migration, discussing v3 as a differentiated product and the quality of users incentivized by each option.
Generated by Kvorum
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