Add sdeUSD as collateral into cUSDTv3 on Mainnet
01Summary
WOOF! proposes to add sdeUSD as collateral to Compound III's cUSDTv3 market on Ethereum. The proposal includes two actions: adding sdeUSD with specific risk parameters (88% LTV, 90% liquidation threshold, 96% max LTV, 5M unit cap) and upgrading Comet to a new version. Parameters are based on Gauntlet's recommendations and have been validated through market simulations.
- Type
- protocol addition
Key changes
- Add sdeUSD (0x5C5b196aBE0d54485975D1Ec29617D42D9198326) as collateral asset to cUSDTv3 with LTV of 88%, liquidation threshold of 90%, max LTV of 96%, and supply cap of 5,000,000 units(high)
- Deploy and upgrade Comet to new version(high)
Generated by Kvorum
02Description
Add sdeUSD as collateral into cUSDTv3 on Mainnet
Proposal summary
WOOF! proposes to add sdeUSD into cUSDTv3 on Ethereum network. This proposal takes the governance steps recommended and necessary to update a Compound III USDT 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 sdeUSD asset as collateral with corresponding configurations.
The second action deploys and upgrades Comet to a new version.
03Mismatch analysis
The proposal describes exactly two actions: (1) adding sdeUSD as collateral with Gauntlet-recommended risk parameters, and (2) deploying and upgrading Comet to activate the change. The decoded calldata contains exactly two actions matching this: an addAsset call targeting the same Comet proxy (cUSDTv3 on mainnet) with plausible risk parameters (88% borrow CF, 90% liquidation CF, 96% liquidation factor, 5M supply cap), followed by a deployAndUpgradeTo call on the same Configurator/Comet proxy pair. Both actions target the correct contracts, and there are no extra or missing actions, no unexpected recipients, and no evidence of parameter values contradicting the stated intent. Since the description does not specify exact numeric parameters, there is nothing to flag as a value mismatch — the specific figures in the calldata are consistent with the general claim that Gauntlet-recommended risk parameters are being applied. Overall, the description accurately and completely represents the on-chain actions.
Generated by Kvorum
04Actions
- Target
- 0x316f…36e3
- Value
- 0 wei
- Function
- addAsset(address,(address,address,uint8,uint64,uint64,uint64,uint128))
- Arguments
{ "cometProxy": "0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840", "assetConfig": [ "0x5C5b196aBE0d54485975D1Ec29617D42D9198326", "0xE4829421ae79f2F44716cCbbb40751cd6Be3d483", "18", "880000000000000000", "900000000000000000", "960000000000000000", "5000000000000000000000000" ] }- Calldata
- Target
- 0x1ec6…8779
- Value
- 0 wei
- Function
- deployAndUpgradeTo(address,address)
- Arguments
{ "cometProxy": "0x3Afdc9BCA9213A35503b077a6072F3D0d5AB0840", "configuratorProxy": "0x316f9708bB98af7dA9c68C1C3b5e79039cD336E3" }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
- Add Collateral deUSD & sdeUSD (staked) on USDC/USDS/USDT on Mainnet ↗discourse · high confidence
Arguments for
- deUSD has strong institutional and retail demand, with significant TVL/market cap growth and an estimated $30M+ in institutional deposits expected within the first week of listing.— Cole0x
- deUSD offers attractive native yield (10-30%+ APY for staked deUSD) that would make it a compelling collateral market for Compound users.— Cole0x
- The asset has undergone multiple reputable audits (Trail of Bits, Quantstamp) and the team is willing to undergo KYC and is doxxed, addressing basic safety concerns.— Cole0x, misher
- Independent risk analysis shows deUSD has reasonable market cap, trading volume, and liquidity metrics making it suitable for listing as collateral.— Sudipan_Chainrisk
- Gauntlet provided detailed, data-driven risk parameter recommendations (supply caps, collateral/liquidation factors, penalties) calibrated to liquidity and redemption pathways, supporting a controlled listing.— Gauntlet
- The proposal followed the full technical governance process with successful simulations, tests, and scenario runs, indicating technical readiness for deployment.— dmitriywoofsoftware
- OpenZeppelin's review found the proposal's description and actions accurate and aligned with Gauntlet's recommendations, with no issues beyond the oracle concern.— jbass-oz
Arguments against
None surfaced.
Unresolved concerns
- sdeUSD has low trading volume and high slippage (e.g., 18% slippage on a 1,000 sdeUSD swap to ETH), leading to a recommendation to observe performance for months before listing it as collateral.— Sudipan_Chainrisk
- The deUSD/USD Chainlink price feed is labeled 'High Market Risk' and a similar feed on Avalanche previously spiked and caused user liquidation losses, posing an oracle risk for Mainnet deployment.— jbass-oz, dmitriywoofsoftware
- There are no alternative price feed options currently available for deUSD on Mainnet, meaning the community must either accept the risky feed or postpone deployment.— dmitriywoofsoftware
- Suggestion for a 3-6 month trial period with more conservative risk settings before moving to standard stablecoin parameters was raised but not clearly adopted in the final Gauntlet recommendations.— misher
Notable participants
- Cole0xProposer from Elixir who introduced deUSD/sdeUSD and provided background, motivation, and responses to audit/KYC questions.
- misherCommunity member who raised audit/KYC conditions and proposed a phased trial approach for listing sdeUSD.
- Sudipan_ChainriskProvided an independent market and liquidity analysis of deUSD/sdeUSD, recommending caution on sdeUSD listing.
- GauntletRisk manager who delivered detailed collateral parameter recommendations (supply caps, CF, LF, liquidation penalty) across multiple Comet markets.
- dmitriywoofsoftwareWOOF! representative who executed the technical governance process, submitted PRs, proposals, and flagged the oracle feed limitation.
- jbass-ozOpenZeppelin reviewer who audited the live proposals and flagged the high-risk Chainlink price feed as a medium severity issue.
Generated by Kvorum
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