KVORUM
compoundSource: Compound governor bravo · #210

2023-12-24: Compound v2 deprecation (Phase 6)

executedJan 7, 2024, 11:32 AM UTCby680x683a…6c02

01Summary

AISummary by Kvorumclaude-haiku-4-5

Gauntlet proposes to reduce Compound v2 DAI supply and borrow rewards from 111.20 to 25 COMP daily in Phase 6 of the v2 deprecation, saving the protocol approximately $3.65M annually while eliminating remaining DAI 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)
  • Projected annual savings of $3.65M in COMP tokens at current price of $58(high)

Notable concerns

  • Action targets DAI market specifically as part of ongoing v2 deprecation strategy
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

142 words

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 single decoded action calls _setCompSpeeds on the Comptroller with the cDAI market address and sets both supply and borrow speeds to 3472222222222222 wei per block. Converting: 25 COMP/day ÷ ~7200 blocks/day = 0.0034722... COMP/block = 3.4722e15 wei, which matches the calldata value exactly for both supply and borrow speeds. This aligns with the description's claim of reducing both DAI supply and borrow rewards to 25 COMP/day. The target market address corresponds to the DAI cToken, consistent with the 'DAI' rewards mentioned in the description. No numeric, target, or action discrepancies were found; the single on-chain action fully and accurately implements what the prose describes.

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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