Gauntlet <> Compound Incentive Optimization
01Summary
Formalize and expand Gauntlet's incentive optimization work for Compound by paying a fixed fee of 7,989 COMP ($300K) streamed over 365 days. Gauntlet will provide quantitative frameworks and recommendations to optimize COMP emissions across Compound V2 and Comet markets. This covers only the fixed fee; a variable performance fee structure is not included in this proposal.
- Type
- treasury allocation
- Funding
- $$300,000
Key changes
- Create a Sablier token stream of 7,989 COMP to Gauntlet (0xD20c9667bf0047F313228F9fE11F8b9F8Dc29bBa) vesting over 365 days as fixed fee payment(high)
- Formalize Gauntlet's engagement to provide continuous incentive optimization for Compound V2 and Comet markets(high)
- Establish quantitative framework for evaluating success or failure of incentive optimization efforts(medium)
Notable concerns
- This proposal covers only the $300K fixed fee; a variable performance fee structure (10% of improvements) is not implemented by this proposal
- Engagement agreement governed by Gauntlet's terms of service at gauntlet.network/tos
Generated by Kvorum
02Description
Gauntlet <> Compound Incentive Optimization
Background
Gauntlet first contributed to incentive optimization for Compound in January 2021 through recalibrating COMP speeds. While Gauntlet’s engagement with the DAO primarily touches risk parameters, incentive management naturally overlaps. Recent examples of Gauntlet's work with Compound incentives include Migration and adjusting Polygon incentives.
Full details of the proposal can be found here.
Proposal
A proposal to formalize and expand Gauntlet’s existing work with Compound on continuous incentive optimization for Compound’s rewards.
As part of the engagement scope, Gauntlet will provide Compound with a quantitative framework to evaluate the success or failure of incentive optimization. Gauntlet will leverage its Incentive Optimization Platform to provide recommendations adjusting incentives across Compound V2 and Comet markets to drive sustainable, efficient growth.
The service fee structure is a $300K fixed fee, paid in $COMP tokens, as well as a variable performance fee. This proposal only implements the $300K fixed fee portion.
Full proposal and forum discussion
Specification
The proposal creates a Sablier stream owned by governance to the beneficiary address 0xD20c9667bf0047F313228F9fE11F8b9F8Dc29bBa for 7,989 COMP over a 365 day vesting duration as detailed above.
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
Compared the beneficiary address, token amount, and vesting duration stated in the description against the decoded approve() and createStream() calls. The beneficiary address matches exactly (0xD20c9667bf0047F313228F9fE11F8b9F8Dc29bBa). The approved and streamed amount (7989000253329519278295 wei, 18 decimals) equals ~7989.00025 COMP, matching the stated 7,989 COMP figure (the tiny fractional difference is immaterial rounding). The stream's start (1686110400) and stop (1717646401) timestamps span 31,536,001 seconds, which equals ~365.00001 days, consistent with the described 365-day vesting duration. The token contract used in both approve() and createStream() is the COMP token address, consistent with the described COMP-denominated fixed fee. No target, value, or duration mismatches were found, and no significant on-chain action (e.g., additional transfers, permission grants) was omitted from the description. The description accurately and completely reflects the two on-chain actions performed by this proposal.
Generated by Kvorum
04Actions
- Target
- 0xc00e…6888
- Value
- 0 wei
- Function
- approve(address,uint256)
- Arguments
{ "0": "0xCD18eAa163733Da39c232722cBC4E8940b1D8888", "1": "7989000253329519278295" }- Calldata
- Target
- 0xcd18…8888
- Value
- 0 wei
- Function
- createStream(address,uint256,address,uint256,uint256)
- Arguments
{ "0": "0xD20c9667bf0047F313228F9fE11F8b9F8Dc29bBa", "1": "7989000253329519278295", "2": "0xc00e94Cb662C3520282E6f5717214004A7f26888", "3": "1686110400", "4": "1717646401" }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| EA0xea6c…3bf7 | For | 331K | 0.00% | — | 4y ago |
| 610x6125…96de | For | 256.8K | 0.00% | — | 4y ago |
| 3E0x3e41…c049 | For | 66K | 0.00% | — | 4y ago |
| ED0xed11…bb04 | For | 50K | 0.00% | — | 4y ago |
| 070x0703…961b | For | 50K | 0.00% | — | 4y ago |
| 130x13bd…8548 | For | 50K | 0.00% | — | 4y ago |
| A10xa118…e5db | For | 33K | 0.00% | — | 4y ago |
| B90xb933…8dd1 | For | 27.5K | 0.00% | — | 4y ago |
| E40xe459…e666 | For | 26K | 0.00% | — | 4y ago |
| DAdakeshi.eth0xe3c9…6b21 | For | 21.3K | 0.00% | — | 4y ago |
| 0F0x0f4f…006a | For | 3K | 0.00% | — | 4y ago |
| 760x7641…b609 | For | 2.9K | 0.00% | — | 4y ago |
| 660x66cd…65f9 | For | 246.7 | 0.00% | — | 4y ago |
| 290x2943…a4e1 | For | 1 | 0.00% | — | 4y ago |
| 710x7152…13ff | For | 1 | 0.00% | — | 4y ago |
| 070x0745…042e | For | 0.3 | 0.00% | — | 4y ago |
| EA0xeacf…033e | For | 0 | 0.00% | — | 4y ago |
| 010x0151…c3b9 | For | 0 | 0.00% | — | 4y ago |
07Forum
- Gauntlet <> Compound Incentive Optimization ↗discourse · high confidence
- Gauntlet <> Compound Renewal ↗discourse · high confidence
Arguments for
- A quantitative framework for incentive design would improve market dynamics and ensure the protocol's long-term sustainability.— Michigan_Blockchain, RogerS
- Gauntlet has demonstrated expertise and a strong track record in incentive optimization across multiple protocols including Uniswap, Sushiswap, and others.— Michigan_Blockchain, RogerS
- Optimizing COMP incentive spend with a 20% efficiency improvement could save approximately $3.5M annually for the protocol.— pauljlei
- Gauntlet can jointly optimize interest rate curves with COMP spend to maximize protocol profit while considering risk constraints.— pauljlei
- The engagement includes continuous model refinement, transparency through community calls and updates, and methodology disclosure.— pauljlei
Arguments against
None surfaced.
Unresolved concerns
- The performance-based fee structure of 10% of improvements benchmarked against annualized protocol profit at proposal execution may not properly account for asset price fluctuations and may reward Gauntlet even in bear markets when the protocol underperforms.— RogerS
- Precise definition and modeling of how interest rate curves and incentives interact and impact each other requires additional clarity.— Michigan_Blockchain
Notable participants
- pauljleiProposal author and primary Gauntlet representative providing detailed explanations of the incentive optimization framework and fee structure.
- Michigan_BlockchainCommunity member who validated the problem space and requested clarification on mathematical definitions and interest rate curve modeling.
- RogerSCommunity member who supported the proposal but proposed an alternative Alpha-based performance fee metric and ultimately accepted the community-vote approach.
- GauntletOrganization representative who provided final cost calculations and announced proposal submission.
Generated by Kvorum
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