Initialize cUSDbCv3 on Base
01Summary
Initialize a new Compound III market (cUSDbCv3) on Base blockchain using bridged USDC (USDbC). The proposal configures market parameters based on Gauntlet recommendations, seeds the market with 10K USDC and 12.5K COMP through the Ethereum-Base bridge, sets initial reward rates of 30 COMP/day supply and 15 COMP/day borrow, reallocates 45 COMP/day from v2 cUSDC incentives to maintain constant total distribution, and updates official market registry.
- Type
- protocol addition
- Funding
- $$22,500
Key changes
- Deploy new Comet implementation on Base with cUSDbCv3 market configuration including risk parameters recommended by Gauntlet(high)
- Set initial COMP reward distribution at 30 COMP/day supply speed and 15 COMP/day borrow speed for new Base market(high)
- Bridge 10,000 USDC from Ethereum mainnet to Base as market reserves(medium)
- Bridge 12,500 COMP from Ethereum mainnet to Base rewards contract(medium)
- Reduce v2 cUSDC COMP distribution by 45 COMP/day to maintain constant total protocol-wide COMP distribution(medium)
- Update ENS TXT record to register cUSDbCv3 as official Compound III market(low)
Notable concerns
- First cross-bridge governance proposal from Ethereum mainnet to Base mainnet introduces novel risks not present in previous proposals
- Requires successful execution of bridge operations for both USDC and COMP across Ethereum-Base bridge
Generated by Kvorum
02Description
Initialize cUSDbCv3 on Base
This proposal takes the governance steps recommended and necessary to initialize a Compound III USDbC (bridged version of USDC on Base) market on Base; upon execution, cUSDbCv3 will be ready for use. Simulations have confirmed the market’s readiness, as much as possible, using the Comet scenario suite. Although real tests have also been run over the Goerli/Base Goerli bridge, this will be the first proposal to actually bridge from Ethereum mainnet to Base mainnet, and therefore includes risks not present in previous proposals.
Although the proposal sets the entire configuration in the Configurator, the initial deployment already has most of these same parameters already set. The new parameters include setting the risk parameters based off of the recommendations from Gauntlet. Finally, the parameters include a modest reallocation of some of the v2 USDC supply-side COMP incentives to users in the new market.
Further detailed information can be found on the corresponding proposal pull request and forum discussion.
Proposal Actions
The first proposal action sets the Comet configuration and deploys a new Comet implementation on Base. This sends the encoded setConfiguration and deployAndUpgradeTo calls across the bridge to the governance receiver on Base. It also calls setRewardConfig on the Base rewards contract, to establish Base’s bridged version of COMP as the reward token for the deployment and set the initial supply speed to be 30 COMP/day and borrow speed to be 15 COMP/day.
The second action approves Base’s L1StandardBridge to take the Timelock's USDC, in order to seed the market reserves through the bridge.
The third action deposits 10K USDC from mainnet to the Base L1StandardBridge contract to bridge to Comet.
The fourth action approves Base’s L1StandardBridge to take Timelock's COMP, in order to seed the rewards contract through the bridge.
The fifth action deposits 12.5K COMP from mainnet to the Base L1StandardBridge contract to bridge to CometRewards.
The sixth action updates the ENS TXT record v3-official-markets on v3-additional-grants.compound-community-licenses.eth, updating the official markets JSON to include the new Base cUSDbCv3 market.
The seventh action reduces the COMP distribution to v2 cUSDC suppliers by 45 COMP/day, so as to keep the total COMP distribution constant.
03Mismatch analysis
I compared each of the seven decoded actions against the corresponding paragraph in the proposal description. Action 0's cross-chain sendMessage payload matches the described setConfiguration/deployAndUpgradeTo/setRewardConfig bundle for initializing cUSDbCv3 and setting bridged COMP as the reward token. Actions 1-2 correctly approve and bridge exactly 10,000 USDC (10000000000 with 6 decimals) via the named L1StandardBridge address, matching the '10K USDC' claim. Actions 3-4 correctly approve and bridge exactly 12,500 COMP (12500000000000000000000 with 18 decimals), matching the '12.5K COMP' claim, and target the correct CometRewards address on Base. Action 5's setText call updates the v3-official-markets ENS record to include the new Base cUSDbCv3 market entry, matching the sixth described action. Action 6 adjusts COMP speeds on the cUSDC market via _setCompSpeeds, consistent with the described reallocation of v2 cUSDC supplier incentives to the new market. All addresses, token amounts, and target contracts align with the prose after accounting for decimal conversions. No unexplained extra actions, missing actions, or value mismatches were found. Given the close alignment across all seven actions and clear correspondence with the described bridge/deploy sequence, I rate this consistent with high confidence.
Generated by Kvorum
04Actions
- Target
- 0x866e…0afa
- Value
- 0 wei
- Function
- sendMessage(address,bytes,uint32)
- Arguments
{ "0": "0x18281dfC4d00905DA1aaA6731414EABa843c468A", "1": "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", "2": "2500000" }- Calldata
- Target
- 0xa0b8…eb48
- Value
- 0 wei
- Function
- approve(address,uint256)
- Arguments
{ "0": "0x3154Cf16ccdb4C6d922629664174b904d80F2C35", "1": "10000000000" }- Calldata
- Target
- 0x3154…2c35
- Value
- 0 wei
- Function
- depositERC20To(address,address,address,uint256,uint32,bytes)
- Arguments
{ "0": "0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48", "1": "0xd9aAEc86B65D86f6A7B5B1b0c42FFA531710b6CA", "2": "0x9c4ec768c28520B50860ea7a15bd7213a9fF58bf", "3": "10000000000", "4": "200000", "5": "0x" }- Calldata
- Target
- 0xc00e…6888
- Value
- 0 wei
- Function
- approve(address,uint256)
- Arguments
{ "0": "0x3154Cf16ccdb4C6d922629664174b904d80F2C35", "1": "12500000000000000000000" }- Calldata
- Target
- 0x3154…2c35
- Value
- 0 wei
- Function
- depositERC20To(address,address,address,uint256,uint32,bytes)
- Arguments
{ "0": "0xc00e94Cb662C3520282E6f5717214004A7f26888", "1": "0x9e1028F5F1D5eDE59748FFceE5532509976840E0", "2": "0x123964802e6ABabBE1Bc9547D72Ef1B69B00A6b1", "3": "12500000000000000000000", "4": "200000", "5": "0x" }- Calldata
- Target
- 0x4976…ba41
- Value
- 0 wei
- Function
- setText(bytes32,string,string)
- Arguments
{ "0": "0x7dcf87198fd673716e5a32b206d9379c4fcbad8875073f52bfd0656759bf89ed", "1": "v3-official-markets", "2": "{\"1\":[{\"baseSymbol\":\"USDC\",\"cometAddress\":\"0xc3d688B66703497DAA19211EEdff47f25384cdc3\"},{\"baseSymbol\":\"WETH\",\"cometAddress\":\"0xA17581A9E3356d9A858b789D68B4d866e593aE94\"}],\"137\":[{\"baseSymbol\":\"USDC\",\"cometAddress\":\"0xF25212E676D1F7F89Cd72fFEe66158f541246445\"}],\"8453\":[{\"baseSymbol\":\"USDbC\",\"cometAddress\":\"0x9c4ec768c28520B50860ea7a15bd7213a9fF58bf\"}],\"42161\":[{\"baseSymbol\":\"USDC\",\"cometAddress\":\"0xA5EDBDD9646f8dFF606d7448e414884C7d905dCA\"}]}" }- Calldata
- Target
- 0x3d98…cd3b
- Value
- 0 wei
- Function
- _setCompSpeeds(address[],uint256[],uint256[])
- Arguments
{ "0": [ "0x39AA39c021dfbaE8faC545936693aC917d5E7563" ], "1": [ "9194444444444444" ], "2": [ "15444444444444444" ] }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| EA0xea6c…3bf7 | For | 330.9K | 51.26% | — | 3y ago |
| 540x54a3…e189 | For | 57.6K | 8.92% | — | 3y ago |
| ED0xed11…bb04 | For | 50K | 7.74% | — | 3y ago |
| 070x0703…961b | For | 50K | 7.74% | — | 3y ago |
| 130x13bd…8548 | For | 50K | 7.74% | — | 3y ago |
| 2B0x2b38…bf33 | For | 32.5K | 5.03% | — | 3y ago |
| B90xb933…8dd1 | For | 27.5K | 4.26% | — | 3y ago |
| 3F0x3fb1…4c8a | For | 25.6K | 3.96% | — | 3y ago |
| DAdakeshi.eth0xe3c9…6b21 | For | 21.3K | 3.30% | — | 3y ago |
| 660x66cd…65f9 | For | 246.7 | 0.04% | — | 3y ago |
| 2A0x2a03…3eb6 | For | 5 | 0.00% | — | 3y ago |
| F60xf6d7…cddd | For | 4.1 | 0.00% | — | 3y ago |
| 340x349e…b578 | For | 1.2 | 0.00% | — | 3y ago |
| 420x4241…722b | For | 1.2 | 0.00% | — | 3y ago |
| 8B0x8bc8…7276 | For | 1.1 | 0.00% | — | 3y ago |
| CF0xcf8c…3620 | For | 1.1 | 0.00% | — | 3y ago |
| 0C0x0c9f…408b | For | 1 | 0.00% | — | 3y ago |
| 580x58c7…b43b | For | 1 | 0.00% | — | 3y ago |
| 2F0x2f2f…f78a | For | 1 | 0.00% | — | 3y ago |
| E40xe459…e666 | For | 0.7 | 0.00% | — | 3y ago |
| 5B0x5b90…0fa3 | For | 0.4 | 0.00% | — | 3y ago |
| 730x7306…c011 | For | 0.3 | 0.00% | — | 3y ago |
| 340x3496…126b | For | 0.3 | 0.00% | — | 3y ago |
| 2D0x2d76…4fc6 | For | 0.2 | 0.00% | — | 3y ago |
| 500x50d2…5318 | For | 0.2 | 0.00% | — | 3y ago |
| 480x48b5…6950 | For | 0.1 | 0.00% | — | 3y ago |
| 920x921e…a936 | For | 0.1 | 0.00% | — | 3y ago |
| DC0xdc52…7fa7 | For | 0.1 | 0.00% | — | 3y ago |
| 2F0x2f8d…a692 | For | 0.1 | 0.00% | — | 3y ago |
| 6B0x6b75…9a2a | For | 0.1 | 0.00% | — | 3y ago |
| 6C0x6cfa…9335 | For | 0.1 | 0.00% | — | 3y ago |
| FF0xff70…3ca5 | For | 0.1 | 0.00% | — | 3y ago |
| 130x136d…269a | For | 0 | 0.00% | — | 3y ago |
| E50xe53f…efec | For | 0 | 0.00% | — | 3y ago |
| D20xd229…268c | For | 0 | 0.00% | — | 3y ago |
| 940x94e6…0e73 | For | 0 | 0.00% | — | 3y ago |
07Forum
- Deploy Compound III on Base ↗discourse · high confidence
Arguments for
- Base is built on the OP Stack with security similar to Optimism, one of the largest L2s, making it a suitable and relatively secure deployment target.— kevin
- Coinbase's popularity with retail users provides an opportunity to onboard a new wave of users to the Compound protocol and position Compound as a core DeFi primitive on Base.— kevin
- Base has demonstrated significant testnet activity with 2.3M accounts created and 24.1M transactions completed, indicating genuine ecosystem development and adoption potential.— kevin
- Aggressive risk parameters should be adopted to ensure Compound remains competitive with other lending protocol deployments on Base.— WintermuteGovernance, Michigan_Blockchain
- Deployment uses proven contract patterns already used on Polygon and Arbitrum, with L1 Timelock governance through a BridgeReceiver ensuring security and decentralization.— kevin
Arguments against
None surfaced.
Unresolved concerns
- Base's sequencer is currently centralized, creating a point of failure for the network.— kevin
- The fraud proof system for Base is still under development and not yet complete.— kevin
- Base core smart contracts can be upgraded by a multi-sig, introducing potential governance and upgrade risks.— kevin
- Parameters are based on assumed testnet TVL and liquidity that may not transfer to mainnet; recommendations must be revisited once mainnet launches and actual liquidity flows in.— Gauntlet
- There is currently no native USDC market on Base, only USDbC (bridged USDC), which provides inferior UX compared to native USDC available on Arbitrum and directly from Coinbase.— gazmagik
Notable participants
- kevinCompound Labs representative who authored the proposal, managed deployments, and provided technical updates throughout the thread.
- GauntletRisk analyst who provided initial parameter recommendations with two options (conservative and aggressive) and ongoing parameter guidance for both markets.
- WintermuteGovernanceCommunity member who expressed support for deployment with preference for aggressive parameters to maintain competitiveness.
- Michigan_BlockchainCommunity member who supported Gauntlet's analysis and endorsed aggressive parameter selection.
- PGovTeam member who managed deployment and initialization of the cWETHv3 market on Base.
- gazmagikCommunity member who raised the concern about native USDC lack and highlighted better UX implications.
Generated by Kvorum
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