Supply Cap Reduction Across L2 Comets (Part 2)
01Summary
WOOF! proposes to reduce supply caps on Compound III markets across multiple L2 networks: USDC, USDT, and WETH on Optimism; USDC and USDT on Polygon; and USDC and WETH on Unichain. Changes are based on Gauntlet recommendations and have been simulated for market readiness.
- Type
- parameter change
Key changes
- Update supply cap for cUSDCv3 on Optimism from 2,500,000,000,000,000,000,000 to 2,480,000,000,000,000,000,000(medium)
- Update supply cap for cUSDTv3 on Optimism from 6,400,000,000,000,000,000,000 to 6,240,000,000,000,000,000,000(medium)
- Update supply cap for cWETHv3 on Optimism from 4,000,000,000,000,000,000 to 3,900,000,000,000,000,000(medium)
- Update supply cap for cUSDCv3 on Polygon from 189,500,000,000,000,000,000,000 to 180,000,000,000,000,000,000,000(medium)
- Update supply cap for cUSDTv3 on Polygon from 150,000,000,000,000,000,000,000 to 140,000,000,000,000,000,000,000(medium)
- Update supply cap for cUSDCv3 on Unichain from 1,000,000,000,000,000,000,000 to 950,000,000,000,000,000,000(medium)
- Update supply cap for cWETHv3 on Unichain from 900,000,000,000,000,000 to 850,000,000,000,000,000(medium)
Notable concerns
- Supply caps are being reduced across multiple critical assets (USDC, USDT, WETH) on multiple L2 networks which could affect borrowing capacity
- Changes require coordination across three separate L2 networks (Optimism, Polygon, Unichain)
Generated by Kvorum
02Description
Supply Cap Reduction Across L2 Comets (Part 2)
Proposal summary
WOOF! proposes to update supply caps on cUSDCv3, cUSDTv3 and cWETHv3 on Optimism, cUSDCv3 and cUSDTv3 on Polygon, cUSDCv3 and cWETHv3 on Unichain networks. This proposal takes the governance steps recommended and necessary to update Compound III markets on each network. Simulations have confirmed the market’s readiness, as much as possible, using the Comet scenario suite. The new parameters are 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 sends a message to the Optimism network to update supply caps on the USDC, USDT and WETH Comets.
The second action sends a message to the Polygon network to update supply caps on the USDC and USDT Comets.
The third action sends a message to the Unichain network to update supply caps on the USDC and WETH Comets.
03Mismatch analysis
The description claims three cross-chain governance messages: (1) Optimism updating caps on USDC, USDT, WETH Comets, (2) Polygon updating caps on USDC and USDT Comets, (3) Unichain updating caps on USDC and WETH Comets. The decoded calldata contains exactly three actions, each a standard L1->L2 governance bridge call (sendMessage / sendMessageToChild) targeting known bridge-style receiver addresses. Within each action's encoded sub-calldata, the number of distinct Comet proxy addresses receiving deployAndUpgradeTo + updateAssetSupplyCap sequences matches the claimed market counts: three markets for Optimism, two for Polygon, two for Unichain. Each market also receives multiple collateral-asset supply-cap updates, which is standard/expected behavior for a 'supply cap update' proposal and is reasonably summarized by the prose without needing to enumerate every collateral asset. I could not independently verify that each specific Comet proxy address corresponds precisely to the named token (e.g., confirming 0x2e44e174... is exactly the Optimism WETH market) since token/market labels aren't present in raw calldata, which limits confidence to medium, but the structural counts, target contract types, and general shape of the proposal align well with the description. No value mismatches, target mismatches, or omitted/extra actions of material significance were identified.
Generated by Kvorum
04Actions
- Target
- 0x25ac…5fa1
- Value
- 0 wei
- Function
- sendMessage(address,bytes,uint32)
- Arguments
{ "_target": "0xC3a73A70d1577CD5B02da0bA91C0Afc8fA434DAF", "_message": 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"_minGasLimit": "3000000" }- Calldata
- Target
- 0xfe5e…89a2
- Value
- 0 wei
- Function
- sendMessageToChild(address,bytes)
- Arguments
{ "_data": "0x0000000000000000000000000000000000000000000000000000000000000080000000000000000000000000000000000000000000000000000000000000016000000000000000000000000000000000000000000000000000000000000002400000000000000000000000000000000000000000000000000000000000000560000000000000000000000000000000000000000000000000000000000000000600000000000000000000000083e0f742cacbe66349e3701b171ee2487a26e73800000000000000000000000083e0f742cacbe66349e3701b171ee2487a26e738000000000000000000000000d712ace4ca490d4f3e92992ecf3de12251b975f900000000000000000000000083e0f742cacbe66349e3701b171ee2487a26e73800000000000000000000000083e0f742cacbe66349e3701b171ee2487a26e738000000000000000000000000d712ace4ca490d4f3e92992ecf3de12251b975f90000000000000000000000000000000000000000000000000000000000000006000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000600000000000000000000000000000000000000000000000000000000000000c00000000000000000000000000000000000000000000000000000000000000120000000000000000000000000000000000000000000000000000000000000018000000000000000000000000000000000000000000000000000000000000001e0000000000000000000000000000000000000000000000000000000000000024000000000000000000000000000000000000000000000000000000000000002a0000000000000000000000000000000000000000000000000000000000000002d7570646174654173736574537570706c7943617028616464726573732c616464726573732c75696e743132382900000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000002d7570646174654173736574537570706c7943617028616464726573732c616464726573732c75696e74313238290000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000236465706c6f79416e6455706772616465546f28616464726573732c61646472657373290000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000002d7570646174654173736574537570706c7943617028616464726573732c616464726573732c75696e743132382900000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000002d7570646174654173736574537570706c7943617028616464726573732c616464726573732c75696e74313238290000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000236465706c6f79416e6455706772616465546f28616464726573732c61646472657373290000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000600000000000000000000000000000000000000000000000000000000000000c0000000000000000000000000000000000000000000000000000000000000014000000000000000000000000000000000000000000000000000000000000001c0000000000000000000000000000000000000000000000000000000000000022000000000000000000000000000000000000000000000000000000000000002a000000000000000000000000000000000000000000000000000000000000003200000000000000000000000000000000000000000000000000000000000000060000000000000000000000000f25212e676d1f7f89cd72ffee66158f5412464450000000000000000000000000d500b1d8e8ef31e21c99d1db9a6444d3adf12700000000000000000000000000000000000000000000067ea94b04fbb18cc00000000000000000000000000000000000000000000000000000000000000000060000000000000000000000000f25212e676d1f7f89cd72ffee66158f541246445000000000000000000000000fa68fb4628dff1028cfec22b4162fccd0d45efb60000000000000000000000000000000000000000000032830ffe161b72200000000000000000000000000000000000000000000000000000000000000000004000000000000000000000000083e0f742cacbe66349e3701b171ee2487a26e738000000000000000000000000f25212e676d1f7f89cd72ffee66158f5412464450000000000000000000000000000000000000000000000000000000000000060000000000000000000000000aeb318360f27748acb200ce616e389a6c9409a070000000000000000000000000d500b1d8e8ef31e21c99d1db9a6444d3adf1270000000000000000000000000000000000000000000002ad3c712aec4845800000000000000000000000000000000000000000000000000000000000000000060000000000000000000000000aeb318360f27748acb200ce616e389a6c9409a07000000000000000000000000fa68fb4628dff1028cfec22b4162fccd0d45efb600000000000000000000000000000000000000000000221f6aba33b08d500000000000000000000000000000000000000000000000000000000000000000004000000000000000000000000083e0f742cacbe66349e3701b171ee2487a26e738000000000000000000000000aeb318360f27748acb200ce616e389a6c9409a07", "_receiver": "0x18281dfC4d00905DA1aaA6731414EABa843c468A" }- Calldata
- Target
- 0x9a3d…98a6
- Value
- 0 wei
- Function
- sendMessage(address,bytes,uint32)
- Arguments
{ "_target": "0x4b5DeE60531a72C1264319Ec6A22678a4D0C8118", "_message": "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", "_minGasLimit": "3000000" }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 3F0x3fb1…4c8a | For | 104.8K | 15.28% | — | 6mo ago |
| 660x66cd…65f9 | For | 80.2K | 11.70% | — | 6mo ago |
| B40xb49f…7948 | For | 60K | 8.75% | — | 6mo ago |
| 050x0579…ca09 | For | 60K | 8.75% | — | 6mo ago |
| 170x1729…b879 | For | 60K | 8.75% | — | 6mo ago |
| B70xb792…89d7 | For | 60K | 8.75% | — | 6mo ago |
| B90xb933…8dd1 | For | 60K | 8.75% | — | 6mo ago |
| D20xd2a7…5a0c | For | 60K | 8.75% | — | 6mo ago |
| B30xb356…c826 | For | 59K | 8.60% | — | 6mo ago |
| 070x0703…961b | For | 51.7K | 7.54% | — | 6mo ago |
| 130x13bd…8548 | For | 30K | 4.37% | — | 6mo ago |
| C50xc554…7759 | For | 11.2 | 0.00% | — | 6mo ago |
| 9F0x9f77…2768 | For | 0.9 | 0.00% | — | 6mo ago |
| 1E0x1e65…a776 | For | 0.1 | 0.00% | — | 5mo ago |
| 280x2817…24f1 | For | 0.1 | 0.00% | — | 6mo ago |
| 3F0x3fc3…d4f7 | For | 0.1 | 0.00% | — | 6mo ago |
| 130x1351…fa14 | For | 0.1 | 0.00% | — | 6mo ago |
| 950x95f6…2c83 | For | 0.1 | 0.00% | — | 5mo ago |
| BA0xba03…b48b | For | 0.1 | 0.00% | — | 6mo ago |
| 880x88f6…0ec0 | For | 0 | 0.00% | — | 6mo ago |
07Forum
- Supply Cap Reduction Across L2 Comets ↗discourse · high confidence
Arguments for
- The three-rule framework consistently applies a proven risk-reduction methodology across all L2 Comets, aligning supply caps with actual user demand rather than speculative headroom.— Gauntlet, PGov, Avantgarde
- Compressed headroom reduces unused risk surface across the L2 footprint without displacing existing users, since all Rule 2 caps remain above current supply balances and preserve room for users to top up collateral during volatility.— Gauntlet, PGov, Avantgarde
- The framework is particularly justified on L2s where long-tail collateral faces thinner liquidity, weaker arbitrage pathways, and more fragmented liquidator coverage than on Ethereum.— Avantgarde
- Rule 1 deprecation of dormant assets (capping at zero) preserves withdraw, repay, and liquidate functionality for existing positions while preventing speculative new deposits on assets with negligible demand.— Gauntlet, PGov
- All technical implementations passed comprehensive testing including Slither, Forge, Tenderly simulations, and scenario suite validation across all affected networks.— woof
- The framework's mental model that unused headroom is unused risk surface is sound given the elevated frequency of long-tail collateral exploits across DeFi over the past year.— PGov
Arguments against
None surfaced.
Unresolved concerns
- wstETH was added to the key collateral assets list only three weeks after the original proposal was posted, yet the proposal instructions do not mention it being excluded from cap reductions, creating ambiguity about whether Rule 3 was correctly applied.— pete
- Several other L2 markets with low stETH utilization may also warrant cap reductions but were not included, including markets on Scroll and other chains listed by pete.— pete
- Multiple Rule 2 assets are sized close to current utilization (mETH at ~51%, weETH at ~50%, wsuperOETHb at ~34%, OP at ~31%), meaning they may reach 80% utilization on day one and require frequent upward adjustments if organic demand continues to grow.— PGov, Avantgarde
- Unclear governance process for reintroducing Rule 1 dormant assets back to normal supply caps if demand returns—whether they follow standard listing review or a lower-friction path.— PGov
- The 20-30% buffer sizing may not adequately account for chain-specific liquidity depth, liquidator coverage, and stress event absorption capacity that varies across the seven different L2 networks.— Avantgarde
Notable participants
- GauntletProposer; authored the supply cap reduction framework and detailed recommendations across all 16 L2 Comets and 37 collateral assets.
- woofImplementation lead; prepared and submitted technical proposals with comprehensive testing and deployment details for all affected markets across L2s.
- PGovFramework validator and forward-looking risk analyst; supported the proposal methodology while raising questions about utilization cadence and dormant asset reinstatement pathways.
- AvantgardeRisk framework analyst; validated the aggregate compression ratios and assessed the particular justification for cap reductions on L2s given local liquidity constraints; voted in favor.
- peteCritical questioner; raised concerns about inconsistent application of Rule 3 to wstETH and other low-utilization stETH markets potentially overlooked in the proposal.
Generated by Kvorum
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