KVORUM
compoundSource: Compound governor oz · #406

Add tETH as collateral into cWETHv3 on Mainnet

canceledFeb 25, 2025, 10:58 AM UTCby3F0x3fb1…4c8a

01Summary

AISummary by Kvorumclaude-haiku-4-5

Compound Growth Program proposes to add tETH (a tokenized ETH derivative) as collateral to the cWETHv3 market on Ethereum mainnet. The proposal includes adding tETH with specific risk parameters based on Gauntlet recommendations and deploying an upgraded version of Comet to support this new collateral.

Type
protocol addition

Key changes

  • Add tETH (0xD11c452fc99cF405034ee446803b6F6c1F6d5ED8) as collateral asset to cWETHv3 market with LTV of 88%, liquidation threshold of 91%, and maximum liquidation discount of 96%(high)
  • Deploy and upgrade Comet to new version to support tETH collateral functionality(high)
  • Implementation of risk parameters recommended by Gauntlet for tETH collateral safety(medium)

Notable concerns

  • Market readiness was simulated using Comet scenario suite but real-world market conditions may differ
  • New collateral asset introduces additional market and smart contract risks to the cWETHv3 market
Contracts0xA17581A9E3356d9A858b789D68B4d866e593aE940x316f9708bb98af7da9c68c1c3b5e79039cd336e30x1ec63b5883c3481134fd50d5daebc83ecd2e87790xD11c452fc99cF405034ee446803b6F6c1F6d5ED8
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

112 words

Add tETH as collateral into cWETHv3 on Mainnet

Proposal summary

Compound Growth Program [AlphaGrowth] proposes to add tETH into cWETHv3 on Ethereum network. This proposal takes the governance steps recommended and necessary to update a Compound III WETH market on Ethereum. 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 on the recommendations from Gauntlet.

Further detailed information can be found on the corresponding proposal pull request and forum discussion.

Proposal Actions

The first action adds tETH asset as collateral with corresponding configurations.

The second action deploys and upgrades Comet to a new version.

03Mismatch analysis

AIMismatch analysis by Kvorum

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

04Actions

2 total
#0addAsset(address,(address,address,uint8,uint64,uint64,uint64,uint128))chain 0x1
Target
0x316f…36e3
Value
0 wei
Function
addAsset(address,(address,address,uint8,uint64,uint64,uint64,uint128))
Arguments
{
  "cometProxy": "0xA17581A9E3356d9A858b789D68B4d866e593aE94",
  "assetConfig": [
    "0xD11c452fc99cF405034ee446803b6F6c1F6d5ED8",
    "0x99A0991433d70A1c70365315278C64B95b196490",
    "18",
    "880000000000000000",
    "910000000000000000",
    "960000000000000000",
    "4000000000000000000000"
  ]
}
Calldata
#1deployAndUpgradeTo(address,address)chain 0x1
Target
0x1ec6…8779
Value
0 wei
Function
deployAndUpgradeTo(address,address)
Arguments
{
  "cometProxy": "0xA17581A9E3356d9A858b789D68B4d866e593aE94",
  "configuratorProxy": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3"
}
Calldata

05Tally

Summed from votes

Voters0
VP participating0
Outcome (current)—
Current support—

06Voters

0 total

No votes recorded yet.

07Forum

AIForum synthesis by Kvorumclaude-sonnet-5
sentiment · favorablethread · constructive

Arguments for

  • Listing tETH as collateral would increase borrowing and lending activity and generate additional fees for Compound by attracting yield-seeking users.— juny
  • tETH diversifies Compound's yield-bearing asset base and aligns with Compound's vision for scalable, resilient DeFi collateral.— juny
  • tETH enhances liquidity and capital efficiency for Compound by capturing staking rewards plus market arbitrage yield.— juny
  • Listing tETH specifically on the ETH and wstETH markets makes the most sense given its underlying composition.— sharp
  • Gauntlet's analysis found sufficient DEX liquidity, growing supply, and manageable volatility to support initializing tETH as collateral with specific conservative risk parameters (88% CF, 91% LF, 4% liquidation penalty, capped supply).— Gauntlet
  • The proposed tETH audits have been fully completed (six audits conducted), addressing prior concerns about incomplete security review.— juny

Arguments against

  • Listing should wait until additional pending audits (Omniscia, BlockSec) are completed, since prior audits found issues to fix.— misher

Unresolved concerns

  • Slither static analysis checks failed repeatedly across multiple PR submissions without an explanation or resolution being posted in the thread.— dmitriywoofsoftware
  • tETH's redemption mechanism is non-atomic, requiring a minimum of 200 wstETH and approximately 7 days to process, which poses liquidation risk considerations that were flagged but not further debated.— Gauntlet
  • Relatively high tETH/WETH and tETH/wstETH volatility was noted as a risk factor influencing conservative parameter choices, without further community discussion on whether this is sufficiently mitigated.— Gauntlet

Notable participants

  • junyProposer from Treehouse Protocol who authored the original proposal, provided background/motivation, and responded to audit concerns.
  • sharpCommunity member who suggested the specific markets (ETH/wstETH) for listing tETH.
  • misherRaised a cautionary concern about incomplete audits before listing.
  • GauntletRisk manager who provided detailed parameter recommendations and liquidity/volatility analysis for tETH collateral on WETH and wstETH comets.
  • dmitriywoofsoftwareTechnical contributor who posted deployment documentation, PR links, and test/action results for implementing tETH across Mainnet markets and later updating its price feed.
Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
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