[Gauntlet] 2024-03-18: Compound v2 Deprecation (Phase 10) - Part 2
01Summary
Phase 10 Part 2 of Compound v2 deprecation: Gauntlet recommends increasing reserve factors from 25% to 50% for MKR, ZRX, YFI, AAVE, and one additional asset to reduce lending supply and accelerate deprecation of v2 markets.
- Type
- parameter change
Key changes
- MKR reserve factor increased from 25% to 50%(medium)
- ZRX reserve factor increased from 25% to 50%(medium)
- YFI reserve factor increased from 25% to 50%(medium)
- AAVE reserve factor increased from 25% to 50%(medium)
- Fifth asset reserve factor increased to 50%(medium)
Notable concerns
- This is part 2 of a multi-part proposal due to transaction limitations in Compound governance
- Deprecation phase continues from community vote in September 2022
Generated by Kvorum
02Description
[Gauntlet] 2024-03-18: Compound v2 Deprecation (Phase 10) - Part 2
Simple Summary
For Phase 10 of the v2 deprecation, Gauntlet recommends the following reserve factor adjustments:
| Symbol | Current Reserve Factor | Recommended Reserve Factor |
|---|---|---|
| MKR | 25.00% | 50.00% |
| ZRX | 25.00% | 50.00% |
| YFI | 25.00% | 50.00% |
| AAVE | 25.00% | 50.00% |
This is Gauntlet's 2nd part of their Phase 10 deprecation per this post on Feb 27th. The limiting number of transactions per proposal via Compound goverance requires Gauntlet to break this proposal into 2 parts.
Motivation
In this September 2022 snapshot vote, the community voted to start deprecating certain assets on the Compound v2 markets. After our analysis, Gauntlet recommends the following reserve factor adjustments to further deprecate the v2 market. Full proposal and forum discussion
<sub> 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. <sub>
03Mismatch analysis
The proposal text names four Compound v2 markets (MKR, ZRX, YFI, AAVE) and states each should have its reserve factor raised from 25% to 50%. The decoded calldata contains five _setReserveFactor calls, each setting the value to 500000000000000000 (50% in 18-decimal fixed point), which correctly matches the described 50% target for the value itself. However, there are five distinct target addresses in the calldata versus only four assets named in the description. This means one action affecting an additional market is not accounted for in the prose. While the action type (raising reserve factor to 50%) is consistent with the stated intent for the other four, the undisclosed fifth market change is a real omission a delegate should be aware of before voting, since they cannot confirm the identity or appropriateness of that address without a separate on-chain lookup. Given the effect is the same benign type of change (routine reserve factor adjustment consistent with the deprecation program) and no funds or permissions are being redirected, I rate this a material rather than severe discrepancy, but it should be flagged for correction or clarification by the proposer.
Discrepancies
- mediumomitted in description
The description lists only four assets (MKR, ZRX, YFI, AAVE) whose reserve factor will be raised to 50%, but the calldata contains five separate _setReserveFactor(50%) calls targeting five distinct contract addresses. One market's reserve factor change is not disclosed anywhere in the prose, so delegates cannot verify which fifth asset is being affected or whether it was intended to be part of this phase.
“| Symbol | Current Reserve Factor | Recommended Reserve Factor |”
Generated by Kvorum
04Actions
- Target
- 0xe65c…d06c
- Value
- 0 wei
- Function
- _setReserveFactor(uint256)
- Arguments
{ "0": "500000000000000000" }- Calldata
- Target
- 0x6c8c…0e4e
- Value
- 0 wei
- Function
- _setReserveFactor(uint256)
- Arguments
{ "0": "500000000000000000" }- Calldata
- Target
- 0x95b4…325b
- Value
- 0 wei
- Function
- _setReserveFactor(uint256)
- Arguments
{ "0": "500000000000000000" }- Calldata
- Target
- 0x80a2…3946
- Value
- 0 wei
- Function
- _setReserveFactor(uint256)
- Arguments
{ "0": "500000000000000000" }- Calldata
- Target
- 0xb331…d407
- Value
- 0 wei
- Function
- _setReserveFactor(uint256)
- Arguments
{ "0": "500000000000000000" }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
- [Gauntlet] v2 deprecation (Phase 10) (2/27/24) ↗discourse · high confidence
Arguments for
None surfaced.
Arguments against
None surfaced.
Notable participants
- GauntletProposer of Phase 10 v2 deprecation strategy with borrow cap and reserve factor adjustments.
Generated by Kvorum
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