KVORUM
compoundSource: Compound governor bravo · #180

[Gauntlet] 2023-09-11: Compound v2 Deprecation (Phase 1)

executedSep 16, 2023, 05:41 PM UTCby680x683a…6c02

01Summary

AISummary by Kvorumclaude-haiku-4-5

Gauntlet proposes Phase 1 of Compound v2 deprecation by adjusting 8 risk parameters across v2 and Ethereum v3 USDC markets. Key changes include: doubling v2 USDC reserve factor to 30%, eliminating COMP distribution to v2 USDC (from 66.20 and 91.20 to 0), increasing v3 USDC COMP supply distribution to 257.40, reducing supply/borrow kinks from 95% to 93%, and raising interest rate slopes to 1.5 to make v3 more attractive and ensure sufficient liquidity for v2 user migration.

Type
parameter change

Key changes

  • Increase v2 USDC Reserve Factor from 15% to 30%(high)
  • Eliminate v2 USDC daily COMP supply distribution (from 66.20 to 0)(high)
  • Eliminate v2 USDC daily COMP borrow distribution (from 91.20 to 0)(high)
  • Increase Ethereum v3 USDC COMP supply distribution from 100 to 257.40(high)
  • Decrease Ethereum v3 USDC Supply Kink from 95% to 93%(medium)
  • Decrease Ethereum v3 USDC Borrow Kink from 95% to 93%(medium)
  • Increase Ethereum v3 USDC Annual Supply Interest Rate Slope High from 0.76 to 1.5(high)
  • Increase Ethereum v3 USDC Annual Borrow Interest Rate Slope High from 0.567 to 1.5(high)

Notable concerns

  • Community poll pending to determine whether USDT and/or DAI markets should also be deprecated in v2
  • Phase 1 designation suggests additional deprecation phases may follow
Contracts0x39aa39c021dfbae8fac545936693ac917d5e75630x3d9819210a31b4961b30ef54be2aed79b9c9cd3b0x316f9708bb98af7da9c68c1c3b5e79039cd336e30xc3d688B66703497DAA19211EEdff47f25384cdc30x1ec63b5883c3481134fd50d5daebc83ecd2e8779
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

357 words

[Gauntlet] 2023-09-11: Compound v2 Deprecation (Phase 1)

Simple Summary

A proposal from Gauntlet to adjust 8 risk parameters, distribution rewards, and IR curve parameters across the v2 and Ethereum v3 USDC protocols for Phase 1 of the Compound v2 Deprecation.

Gauntlet recommends the following changes:

  • Increase v2 USDC Reserve Factor from 15% to 30%.
  • Decrease v2 USDC daily COMP supply distribution from 66.20 to 0.
  • Decrease v2 USDC daily COMP borrow distribution from 91.20 to 0.
  • Increase Ethereum v3 USDC COMP supply distribution from 100 to 257.40.
  • Decrease Ethereum v3 USDC Supply Kink from 95% to 93%.
  • Decrease Ethereum v3 USDC Borrow Kink from 95% to 93%.
  • Increase Ethereum v3 USDC Annual Supply Interest Rate Slope High from 0.76 to 1.5.
  • Increase Ethereum v3 USDC Annual Borrow Interest Rate Slope High from 0.567 to 1.5.

For more details, see the full forum post here.

Motivation

The community has expressed interest in deprecating the v2 market. Recent Gauntlet recommendations have been aligned with this strategic initiative, with the execution of pausing of supply for v2 tail assets.

Currently there is a poll to deteremine whether the community would like to deprecate USDT and/or DAI markets in v2. In the meantime, Gauntlet recommends the proposed v2 USDC deprecation changes in Phase 1 with the following goals in mind:

  • Ensure enough borrowable USDC exists in v3 so that v2 users can migrate
  • Limit poor UX for v2 users

Full proposal and forum discussion

Specification

The proposal updates the parameters using:

  • The _setReserveFactor method of the cUSDC contract.
  • The _setCompSpeeds method of the Comptroller contract.
  • The setBaseTrackingSupplySpeed method of the Ethereum v3 USDC Configurator contract.
  • The setBorrowKink method of the Ethereum v3 USDC Configurator contract.
  • The setSupplyKink method of the Ethereum v3 USDC Configurator contract.
  • The setSupplyPerYearInterestRateSlopeHigh method of the Ethereum v3 USDC Configurator contract.
  • The setBorrowPerYearInterestRateSlopeHigh method of the Ethereum v3 USDC Configurator contract.

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

AIMismatch analysis by Kvorumclaude-sonnet-5
Consistent

I compared each of the eight described parameter changes against the decoded calldata. All numeric values match after unit conversion: Reserve Factor 30% = 3e17; COMP speeds set to 0 for both supply and borrow via a single _setCompSpeeds call; base tracking supply speed 2979166666666 (per-second, 1e15-scaled) converts to ~257.40 COMP/day matching the stated increase; both kinks set to 930000000000000000 = 93% matching the described decrease from 95%; both interest rate slopes set to 1.5e18 = 1.5 matching the described increases from 0.76 and 0.567 respectively. The final action (deployAndUpgradeTo) is not mentioned in the prose, but this is the standard, mandatory Compound v3 Configurator pattern used to apply any parameter changes to the live Comet proxy — it is routine bookkeeping inherent to how v3 config updates are executed, not a separate substantive action, so it is not flagged as a discrepancy. No value, target, or directional mismatches were found; the proposal accurately and completely describes what the calldata executes. Confidence is high because both the description and calldata provide precise, directly comparable numeric values for every action.

Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
Review the decoded actions ↗

04Actions

8 total
#0_setReserveFactor(uint256)chain 0x1
Target
0x39aa…7563
Value
0 wei
Function
_setReserveFactor(uint256)
Arguments
{
  "0": "300000000000000000"
}
Calldata
#1_setCompSpeeds(address[],uint256[],uint256[])chain 0x1
Target
0x3d98…cd3b
Value
0 wei
Function
_setCompSpeeds(address[],uint256[],uint256[])
Arguments
{
  "0": [
    "0x39AA39c021dfbaE8faC545936693aC917d5E7563"
  ],
  "1": [
    "0"
  ],
  "2": [
    "0"
  ]
}
Calldata
#2setBaseTrackingSupplySpeed(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setBaseTrackingSupplySpeed(address,uint64)
Arguments
{
  "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3",
  "1": "2979166666666"
}
Calldata
#3setBorrowKink(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setBorrowKink(address,uint64)
Arguments
{
  "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3",
  "1": "930000000000000000"
}
Calldata
#4setBorrowPerYearInterestRateSlopeHigh(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setBorrowPerYearInterestRateSlopeHigh(address,uint64)
Arguments
{
  "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3",
  "1": "1500000000000000000"
}
Calldata
#5setSupplyKink(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setSupplyKink(address,uint64)
Arguments
{
  "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3",
  "1": "930000000000000000"
}
Calldata
#6setSupplyPerYearInterestRateSlopeHigh(address,uint64)chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
setSupplyPerYearInterestRateSlopeHigh(address,uint64)
Arguments
{
  "0": "0xc3d688B66703497DAA19211EEdff47f25384cdc3",
  "1": "1500000000000000000"
}
Calldata
#7deployAndUpgradeTo(address,address)chain 0x1
Target
0x1ec6…8779
Value
0 wei
Function
deployAndUpgradeTo(address,address)
Arguments
{
  "0": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3",
  "1": "0xc3d688B66703497DAA19211EEdff47f25384cdc3"
}
Calldata

05Tally

Summed from votes

Voters0
VP participating0
Outcome (current)—
Current support—

06Voters

0 total
Filter:
VoterChoice% of totalRationale
EA0xea6c…3bf7For331K0.00%—3y ago
8D0x8d07…a265For70K0.00%—3y ago
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DAdakeshi.eth0xe3c9…6b21For21.3K0.00%—3y ago
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CA0xca5b…3abfFor00.00%—3y ago
Showing 42

07Forum

AIForum synthesis by Kvorumclaude-haiku-4-5
sentiment · favorablethread · constructive

Arguments for

  • Deprecating v2 and migrating users to v3 is aligned with the community's strategic initiative and necessary for protocol evolution.— Gauntlet, MathisGD
  • Increasing v2 stablecoin reserve factors incentivizes suppliers to migrate from v2 to v3 while avoiding forced liquidations.— Gauntlet
  • Allocating v2 rewards to v3 USDC suppliers increases net supply APR to 5.08%, making v3 more attractive and ensuring sufficient borrowable USDC for v2 borrowers to migrate.— Gauntlet
  • Decreasing the v3 USDC supply kink to 93% increases willingness for suppliers to provide liquidity by reducing equilibrium utilization.— Gauntlet
  • Increasing v3 USDC slope high parameters to 1.5 incentivizes the market to reestablish equilibrium more quickly after high utilization periods.— Gauntlet
  • The proposed soft changes (reserve factors, IR curves, reward allocation) achieve deprecation without aggressive measures like collateral factor reductions or supply pauses that could cause poor UX.— Gauntlet, MathisGD

Arguments against

None surfaced.

Unresolved concerns

  • Should DAI deprecation be delayed until a v3 DAI comet is deployed, given that the largest DAI supplier (47% of supply) and borrower (42% of borrows) is recursive and may leave if rewards are slashed?— kevin
  • Should USDT deprecation be delayed until the v3 USDT comet is completed by Labs, rather than forcing users to migrate without a clear on-chain replacement?— kevin

Notable participants

  • GauntletProposer who designed and championed the v2 deprecation strategy with detailed analysis, economic modeling, and iterative refinement based on community feedback.
  • kevinCore contributor (Compound Labs) who raised critical concerns about deprecating DAI and USDT before v3 markets exist, leading Gauntlet to defer those deprecations.
  • MathisGDRepresentative of Morpho Labs who affirmed the proposal's approach and agreed that supply should not be paused on v2 to preserve the ecosystem.
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Open the thread ↗