KVORUM
compoundSource: Compound governor oz · #408

Alternate Governance track for Market Updates - Mantle

executedFeb 26, 2025, 10:32 AM UTCbyD20xd2a7…5a0c

01Summary

AISummary by Kvorumclaude-haiku-4-5

Compound proposes an alternate governance track for market parameter updates on Mantle to streamline operations. Currently 70-90% of proposals are market updates that consume ~$300,000 annually in review costs while rarely receiving thorough community validation. The proposal would grant market admin role to a Safe address (maintained by Gauntlet or community members) with updates going through a timelock for community review/blocking, allowing faster iteration on non-critical market parameters while freeing governance focus for strategic decisions like partnerships and new chains.

Type
governance change

Key changes

  • Create alternate governance track for market parameter updates with timelock, bypassing standard governance lifecycle(high)
  • Grant market admin role to Safe address maintained by Gauntlet or community members(high)
  • Implement timelock mechanism allowing community to review or block market updates before execution(high)
  • Change proxy admin and upgrade Configurator contract on Mantle(medium)

Notable concerns

  • Centralizes market update authority to a single Safe address rather than distributed governance
  • Timelock duration not specified in proposal description
  • No clear escalation mechanism defined if community disagrees with market updates during timelock
  • Assumes community members have capacity to review updates during timelock period despite historical low participation
Contracts0xc91EcA15747E73d6dd7f616C49dAFF37b9F1B6040xe268b436e75648aa0639e2088fa803fea517a0c70x258ba415e5de9e8929d95853add4be483c968e6d0xb77cd4cd000957283d8baf53cd782ecf029cf7db
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
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02Description

324 words

Alternate Governance track for Market Updates - Mantle

Proposal summary

DoDAO has been examining various areas where improvements can be made to governance in Compound through tooling or automation. A significant issue raised repeatedly by many members concerns the time and effort required to apply Market Updates.

Currently, approximately 70-90% of the proposals pertain solely to updating market parameters. Gauntlet uses analytics and algorithms to determine new parameters based on current market conditions. These proposals are highly specific and require unique skills for validation. So far, we have seen minimal participation from other community members or teams in validating these parameters.

Assuming the total cost of reviewing a proposal (including the effort of all delegates) is $2,000 per proposal, we are spending upwards of $300,000 per year on a process that currently acts more as a friction layer without much safeguard, as these market update proposals are rarely reviewed thoroughly.

This not only slows down the process but also diverts focus from reviewing essential proposals related to new partnerships, the addition of new chains, and the introduction of assets, etc.

We propose a parallel process specifically for market updates that can bypass the normal governance lifecycle. This would enable us, as a Compound community, to move faster and concentrate on the most critical decisions.

This proposal has already been discussed here - https://www.comp.xyz/t/market-updates-alternate-governance-track/5379

The forum post includes two solutions, and OpenZeppelin has provided details and feedback on those solutions.

After discussing with OpenZeppelin, DoDAO and OZ together believe that given the amount of changes, updating the Configurator could be the best solution. OpenZeppelin mentioned a couple of important points in the forum post:

  1. Grant the market admin role to an Safe address, which can be maintained by Gauntlet or other community members.
  2. Market Updates to the Configurator will go through a timelock, providing sufficient time for the community to review or even block the market updates via this alternate route.

03Mismatch analysis

AIMismatch analysis by Kvorum

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

04Actions

1 total
#0sendMessage(address,bytes,uint32)chain 0x1
Target
0x676a…7120
Value
0 wei
Function
sendMessage(address,bytes,uint32)
Arguments
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  "_minGasLimit": "2500000"
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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

  • Routing routine market parameter updates through full governance imposes significant time, coordination, and gas costs (potentially $2000+ per proposal) that could be avoided with a faster alternate track.— DoDAO, cylon, Gauntlet
  • A faster, dedicated pipeline lets Gauntlet respond quickly to changing market conditions and risk events, improving protocol safety and capital efficiency.— Gauntlet, woof, sharp
  • Security is preserved because the new track restricts Gauntlet to a narrow whitelist of parameter-setting functions, uses a timelock delay, and grants cancellation rights to a Proposal Guardian/community multisig.— robinnagpal, woof, DoDAO
  • The design has already been implemented and audited (OpenZeppelin reviews) and successfully deployed on Optimism, cutting update time from ~10 days to ~2 days without issues.— woof, robinnagpal, sharp
  • Existing Seatbelt-style monitoring, checks, and Discord alerts already give the community visibility into alternate-track proposals, addressing transparency needs.— robinnagpal, DoDAO
  • Adding clearer notification rules and a dashboard for change history would further strengthen community awareness of updates made via the new track.— Tane, DoDAO

Arguments against

  • Bypassing full governance for market updates reduces direct community oversight and voting control over parameter changes.— cylon
  • The simple Configurator-only approach is technically insufficient because applying changes still requires a ProxyAdmin upgrade callable only by the Timelock, complicating the 'bypass governance' goal.— dmitriywoofsoftware
  • Concentrating signing authority in a small Gauntlet-controlled Safe (moving toward 2/3 or 3/5) raises centralization and trust concerns over who controls market parameters.— PGov
  • The proposal went to an on-chain vote after a long silence and with unclear details (e.g., ambiguous 'Optimism' title, timelock duration, signer identities), creating confusion about what governance was actually approving.— PGov

Unresolved concerns

  • Whether Tally or a custom platform should be built to give the community native visibility into pending optimistic/alternate-track proposals remains an open infrastructure decision.— woof, robinnagpal
  • Final composition and long-term governance of the Market Admin Safe (number of signers, inclusion of non-Gauntlet parties) has not been settled.— PGov, robinnagpal
  • Whether Rewards V2 speed parameters (setBaseTrackingSupplySpeed/BorrowSpeed) should be added to the alternate track's scope is still under community discussion.— woof
  • Prioritization of which chains should next receive the Alternate Governance Track deployment has not been decided.— woof
  • Cross-chain execution status tracking (proposals showing 'executed' on Ethereum but not yet on L2) was flagged as a gap, with only partial confirmation that it's fully resolved.— woof, robinnagpal

Notable participants

  • DoDAOOriginal proposer who identified the governance overhead problem and proposed the Configurator-based bypass approach.
  • cylonOpenZeppelin representative who provided detailed technical analysis of both proposed approaches and their trade-offs.
  • GauntletRisk manager who would operate the new market admin role and expressed general support for either approach.
  • dmitriywoofsoftwareWOOF! team member who identified a technical flaw in the Configurator-only approach and proposed an alternative Governor Bravo modification.
  • robinnagpalDoDAO lead who refined the technical design, answered community questions, provided safe/signer details, and reported on deployments and audits.
  • PGovCommunity member who raised pointed questions about transparency, safe signers, and the timelock/chain naming ambiguity before the governance vote.
  • TaneSupportive voter who suggested adding transparency mechanisms like notifications and a change-history dashboard.
  • woofWOOF! team member who provided a post-deployment infrastructure review, flagged monitoring gaps, and proposed extending scope to Rewards V2.
  • sharpCommunity member who affirmed the alternate track's benefit for faster market management on deployed chains.
  • jbass-ozOpenZeppelin auditor who confirmed audit results and stated no additional infrastructure was needed for monitoring.
Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
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