KVORUM
compoundSource: Compound governor bravo · #208

[Gauntlet] 2023-12-24: Compound v2 Deprecation (Phase 6)

defeatedDec 30, 2023, 07:42 AM UTCby680x683a…6c02

01Summary

AISummary by Kvorumclaude-haiku-4-5

Gauntlet proposes reducing Compound v2 daily COMP rewards for DAI supply and borrow from 111.20 to 25 COMP each (Phase 6 of deprecation), targeting $3.65M annual savings while eliminating recursive borrowers.

Type
parameter change

Key changes

  • Decrease Daily COMP DAI Supply Rewards from 111.20 to 25(high)
  • Decrease Daily COMP DAI Borrow Rewards from 111.20 to 25(high)

Notable concerns

  • Proposal aims to eliminate remaining DAI recursive borrowers from v2, which may affect users with recursive DAI positions
Contracts0x3d9819210a31b4961b30ef54be2aed79b9c9cd3b
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

143 words

[Gauntlet] 2023-12-24: Compound v2 Deprecation (Phase 6)

Simple Summary

A proposal from Gauntlet to adjust two Compound v2 reward distributions for Phase 6 of the Compound v2 Deprecation.

Gauntlet recommends the following v2 reward updates:

  • Decrease Daily COMP DAI Supply Rewards from 111.20 to 25
  • Decrease Daily COMP DAI Borrow Rewards from 111.20 to 25

For more details, see the full forum post here.

Motivation

Given the current COMP price of $58, these changes would save the protocol $3.65M/year in COMP tokens, while aiming to eliminate the remaining DAI recursive borrowers from v2.

Full proposal and forum discussion

Specification

The proposal updates the parameters using the _setCompSpeeds method of the Comptroller 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

The proposal claims two changes: reducing the daily COMP supply and borrow reward rates for the cDAI market from 111.20 to 25 each. The single decoded action calls _setCompSpeeds on the Comptroller, targeting one market address (presumably cDAI) with both the supply-speed and borrow-speed arrays set to 3472222222222222 wei per block. Converting this per-block rate to a daily rate using the standard 7200 blocks/day assumption (25/7200 = 0.0034722222...) yields exactly 25 COMP/day for both supply and borrow, matching the description precisely. The function used (_setCompSpeeds) matches the specification section exactly, and no additional or unmentioned actions are present in the calldata. There are no unit mismatches, target mismatches, or omitted/extra actions. Confidence is high because the numeric conversion aligns exactly and the market/function referenced match the prose.

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

04Actions

1 total
#0_setCompSpeeds(address[],uint256[],uint256[])chain 0x1
Target
0x3d98…cd3b
Value
0 wei
Function
_setCompSpeeds(address[],uint256[],uint256[])
Arguments
{
  "0": [
    "0x5d3a536E4D6DbD6114cc1Ead35777bAB948E3643"
  ],
  "1": [
    "3472222222222222"
  ],
  "2": [
    "3472222222222222"
  ]
}
Calldata

05Tally

Summed from votes

Voters0
VP participating0
Outcome (current)—
Current support—

06Voters

0 total

No votes recorded yet.

07Forum

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

Arguments for

  • Reducing DAI rewards from 111.20 to 25 daily COMP will save the protocol $3.15M annually while eliminating incentives for recursive borrowing that contradicts v3 comet intentions.— Gauntlet
  • The current reward structure produces a Net Earn APR of 4.72% that is higher than the Net Borrow APR of 3.36%, actively encouraging recursive borrowing behavior that should be discouraged.— Gauntlet
  • DAI rewards represent 20.1% of total COMP distribution despite DAI being the only remaining v2 asset with rewards, an outsized allocation that should be rebalanced.— Gauntlet
  • After the reduction, the Net Supply APR becomes lower than the Net Borrow APR, eliminating the mathematical incentive for recursive borrowing strategies.— Gauntlet

Arguments against

  • Reducing rewards risks causing the second-largest DAI borrower (address ending in fbe5ddc3), a non-recursive user supplying $52.06M in WETH and WBTC, to exit the protocol before v3 comets launch.— Gauntlet

Notable participants

  • GauntletProposal author and primary analyst providing technical rationale, data, and post-execution monitoring of outcomes.
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
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