KVORUM
compoundSource: Compound governor oz · #395

Initialize cUSDSv3 on Base

executedFeb 11, 2025, 01:15 PM UTCbyD20xd2a7…5a0c

01Summary

AISummary by Kvorumclaude-haiku-4-5

Compound Growth Program proposes deploying Compound III to Base network, initializing a cUSDSv3 market with 100K USDS in reserves. The proposal involves setting risk parameters per Gauntlet recommendations, bridging 100K USDS from mainnet, reducing cDAI reserves to seed the market, and updating official market records.

Type
protocol addition
Funding
$100000

Key changes

  • Deploy Compound III cUSDSv3 market on Base network with risk parameters based on Gauntlet recommendations(high)
  • Set COMP reward speeds at 24 COMP/day for supply and 12 COMP/day for borrow on Base cUSDSv3(high)
  • Reduce cDAI reserves by 100K and convert to 100K USDS to seed Base market reserves(high)
  • Bridge 100K USDS from mainnet to Base L1USDSBridge contract for market initialization(high)
  • Use Spark team's sUSDS/USDS price feed on Base due to different contract standard from mainnet(medium)
  • Update ENS TXT record to include new Base cUSDSv3 market in official v3-additional-grants markets list(low)

Notable concerns

  • cbBTC collateral recommendations were provided internally by Gauntlet due to market deployment speed; forum update with formal recommendations expected by voting start
  • sUSDS price feed uses Spark team's externally deployed feed rather than standard Compound implementation due to Base contract standard differences
  • Market deployment requires cross-chain messaging and bridge operations with associated risks
Contracts0x2c776041CCFe903071AF44aa147368a9c8EEA5180x5d3a536e4d6dbd6114cc1ead35777bab948e36430x6b175474e89094c44da98b954eedeac495271d0f0x3225737a9bbb6473cb4a45b7244aca2befdb276a0xdc035d45d973e3ec169d2276ddab16f1e407384f0xa5874756416fa632257eea380cabd2e87ced352a0x4976fb03c32e5b8cfe2b6ccb31c09ba78ebaba41
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

370 words

Initialize cUSDSv3 on Base

Proposal summary

Compound Growth Program [AlphaGrowth] proposes the deployment of Compound III to the Base network. This proposal takes the governance steps recommended and necessary to initialize a Compound III USDS market on Base; upon execution, cUSDSv3 will be ready for use. Simulations have confirmed the market’s readiness, as much as possible, using the Comet scenario suite. The new parameters include setting the risk parameters based off of the recommendations from Gauntlet.

Further detailed information can be found on the corresponding proposal pull request, deploy market GitHub action run and forum discussion.

cbBTC collateral

Due to the high speed of the market deployment, Gauntlet provided recommendations for cbBTC internally. By the voting start of voting, Gauntlet should be able to update forum the thread with recommendations.

sUSDS price feed

The sUSDS on Mainnet was a 4626 contract. However, on Base, the sUSDS contract has another contract standard. To speed up the development we decided to use the already deployed price feed of sUSDS/USDS on Base by Spark team. The price feed is compatible with our price feed interface and can be re-used. The audit report of price feed.

Proposal Actions

The first proposal action sets the Comet configuration, deploys a new Comet implementation on Base and sends the encoded 'setFactory', 'setConfiguration' and 'deployAndUpgradeTo' calls across the bridge to the governance receiver on Base. It also calls 'setRewardConfig' on the Base rewards contract, to set the new Comet’s supply speed to 24 COMP/day and borrow speed to 12 COMP/day.

The second action reduces Compound’s cDAI reserves and transfers it to Timelock, in order to convert it for USDS and then seed the market reserves for the cUSDSv3 Comet.

The third action approves DaiToUsdsConverterAddress to take Timelock’s DAI and covert it into USDS.

The fourth action converts DAI into USDS so it can be transferred to Base in order to seed the reserves.

The fifth action approves L1USDSBridge to take Timelock's USDS.

The sixth action deposits 100K USDS from mainnet to the Base L1USDSBridge contract to bridge to the Comet.

The seventh 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 Mantle cUSDSv3 market.

03Mismatch analysis

AIMismatch analysis by Kvorum

A calldata-vs-description analysis is not generated yet. Review the decoded actions →

04Actions

7 total
#0sendMessage(address,bytes,uint32)chain 0x1
Target
0x866e…0afa
Value
0 wei
Function
sendMessage(address,bytes,uint32)
Arguments
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  "_minGasLimit": "3000000"
}
Calldata
#1_reduceReserves(uint256)chain 0x1
Target
0x5d3a…3643
Value
0 wei
Function
_reduceReserves(uint256)
Arguments
{
  "reduceAmount": "100000000000000000000000"
}
Calldata
#2approve(address,uint256)chain 0x1
Target
0x6b17…1d0f
Value
0 wei
Function
approve(address,uint256)
Arguments
{
  "amount": "100000000000000000000000",
  "address": "0x3225737a9Bbb6473CB4a45b7244ACa2BeFdB276A"
}
Calldata
#3daiToUsds(address,uint256)chain 0x1
Target
0x3225…276a
Value
0 wei
Function
daiToUsds(address,uint256)
Arguments
{
  "usr": "0x6d903f6003cca6255D85CcA4D3B5E5146dC33925",
  "wad": "100000000000000000000000"
}
Calldata
#4approve(address,uint256)chain 0x1
Target
0xdc03…384f
Value
0 wei
Function
approve(address,uint256)
Arguments
{
  "amount": "100000000000000000000000",
  "address": "0xA5874756416Fa632257eEA380CAbd2E87cED352A"
}
Calldata
#5bridgeERC20To(address,address,address,uint256,uint32,bytes)chain 0x1
Target
0xa587…352a
Value
0 wei
Function
bridgeERC20To(address,address,address,uint256,uint32,bytes)
Arguments
{
  "_to": "0x2c776041CCFe903071AF44aa147368a9c8EEA518",
  "_amount": "100000000000000000000000",
  "_extraData": "0x",
  "_localToken": "0xdC035D45d973E3EC169d2276DDab16f1e407384F",
  "_minGasLimit": "200000",
  "_remoteToken": "0x820C137fa70C8691f0e44Dc420a5e53c168921Dc"
}
Calldata
#6setText(bytes32,string,string)chain 0x1
Target
0x4976…ba41
Value
0 wei
Function
setText(bytes32,string,string)
Arguments
{
  "key": "v3-official-markets",
  "node": "0x7dcf87198fd673716e5a32b206d9379c4fcbad8875073f52bfd0656759bf89ed",
  "value": "{\"1\":[{\"baseSymbol\":\"USDC\",\"cometAddress\":\"0xc3d688B66703497DAA19211EEdff47f25384cdc3\"},{\"baseSymbol\":\"WETH\",\"cometAddress\":\"0xA17581A9E3356d9A858b789D68B4d866e593aE94\"},{\"baseSymbol\":\"USDT\",\"cometAddress\":\"0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840\"},{\"baseSymbol\":\"wstETH\",\"cometAddress\":\"0x3D0bb1ccaB520A66e607822fC55BC921738fAFE3\"},{\"baseSymbol\":\"USDS\",\"cometAddress\":\"0x5D409e56D886231aDAf00c8775665AD0f9897b56\"}],\"10\":[{\"baseSymbol\":\"USDC\",\"cometAddress\":\"0x2e44e174f7D53F0212823acC11C01A11d58c5bCB\"},{\"baseSymbol\":\"USDT\",\"cometAddress\":\"0x995E394b8B2437aC8Ce61Ee0bC610D617962B214\"},{\"baseSymbol\":\"WETH\",\"cometAddress\":\"0xE36A30D249f7761327fd973001A32010b521b6Fd\"}],\"137\":[{\"baseSymbol\":\"USDC\",\"cometAddress\":\"0xF25212E676D1F7F89Cd72fFEe66158f541246445\"},{\"baseSymbol\":\"USDT\",\"cometAddress\":\"0xaeB318360f27748Acb200CE616E389A6C9409a07\"}],\"5000\":[{\"baseSymbol\":\"USDe\",\"cometAddress\":\"0x606174f62cd968d8e684c645080fa694c1D7786E\"}],\"8453\":[{\"baseSymbol\":\"USDbC\",\"cometAddress\":\"0x9c4ec768c28520B50860ea7a15bd7213a9fF58bf\"},{\"baseSymbol\":\"WETH\",\"cometAddress\":\"0x46e6b214b524310239732D51387075E0e70970bf\"},{\"baseSymbol\":\"USDC\",\"cometAddress\":\"0xb125E6687d4313864e53df431d5425969c15Eb2F\"},{\"baseSymbol\":\"AERO\",\"cometAddress\":\"0x784efeB622244d2348d4F2522f8860B96fbEcE89\"},{\"baseSymbol\":\"USDS\",\"cometAddress\":\"0x2c776041CCFe903071AF44aa147368a9c8EEA518\"}],\"42161\":[{\"baseSymbol\":\"USDC.e\",\"cometAddress\":\"0xA5EDBDD9646f8dFF606d7448e414884C7d905dCA\"},{\"baseSymbol\":\"USDC\",\"cometAddress\":\"0x9c4ec768c28520B50860ea7a15bd7213a9fF58bf\"},{\"baseSymbol\":\"WETH\",\"cometAddress\":\"0x6f7D514bbD4aFf3BcD1140B7344b32f063dEe486\"},{\"baseSymbol\":\"USDT\",\"cometAddress\":\"0xd98Be00b5D27fc98112BdE293e487f8D4cA57d07\"}],\"534352\":[{\"baseSymbol\":\"USDC\",\"cometAddress\":\"0xB2f97c1Bd3bf02f5e74d13f02E3e26F93D77CE44\"}]}"
}
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

  • USDS market on Base is experiencing significant growth with over $200M in TVL, positioning Compound to be an early mover and capture market share in Q1-Q2 2025.— Gauntlet, sharp
  • The proposed $25M supply cap for sUSDS is reasonable and conservative given current market conditions and liquidity constraints.— DudeCOMPONLY, Gauntlet
  • Gauntlet's recommended risk parameters (93% CF, 95% LF, 4% LP for sUSDS) are well-calibrated based on liquidity analysis and aligned with comparable assets like sUSDe on Mantle.— Gauntlet
  • The incentive structure with 24 COMP/day supply rewards and 12 COMP/day borrow rewards provides attractive early-stage APYs (10.20% net supply, 3.04% net borrow) to bootstrap the market.— Gauntlet
  • All technical testing and deployment checks passed successfully, including Forge tests, gas profiling, unit tests, and contract deployment on Base.— dmitriywoofsoftware

Arguments against

  • USDS liquidity on Base is currently thin with only $1.38M in DEX TVL, creating concerns about liquidation pathways and market depth.— mexilc

Unresolved concerns

  • Slither static analysis failed for the proposed code, and there is no indication this was resolved before deployment.— dmitriywoofsoftware
  • The sUSDS price feed on Base uses a different contract standard than mainnet's 4626 implementation, relying instead on Spark team's existing price feed which may introduce dependency and validation concerns.— dmitriywoofsoftware

Notable participants

  • GauntletRisk analyst providing detailed parameter recommendations and liquidity analysis for the USDS market on Base.
  • dmitriywoofsoftwareCore contributor implementing the proposal, conducting technical testing, and managing contract deployment on Base.
  • sharpCompound Growth Program representative affirming support and indicating inclusion in the Growth Program pipeline.
  • mexilcCommunity member raising concerns about thin liquidity conditions on Base for USDS trading.
  • DudeCOMPONLYCommunity member expressing approval of the proposal and the proposed $25M supply cap.
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
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