Set WBTC Collateral Factor to 75%
This change increases the Collateral Factor of WBTC from 60% to 75%.
On October 1st, Proposal 24 was passed to raise WBTC’s Collateral Factor from 40% to 60%. According to Defi Pulse, on October 1st, there were ~$1B of WBTC in circulation. Today there are $4.38B of WBTC in circulation. In addition to having a much larger supply today, WBTC liquidity has significantly grown since Proposal 24 was passed.
Uniswap: $150M Sushiswap: $256M Balancer: $200M 1inch: $160M
In addition to growing liquidity on decentralized exchanges, centralized exchanges are continuing to adopt WBTC. Shortly after Proposal 24 passed, Coinbase added WBTC markets. As well, Binance continues to be a growing hub for WBTC/BTC trading.
With the significant increase in WBTC circulation, liquidity, and infrastructure, it is safe for Compound to increase Collateral Factor to 75%. From a growth/business standpoint, AAVE currently has its Collateral Factor set to 75%. Compound Finance needs to remain competitive to avoid losing market share.
| Voter | Cast Power | Vote & Rationale |
|---|---|---|
 0x6626...15c35c | 126,084 | FOR |
 0x05C5...6500Bb | 102,185 | FOR |
 0x54A3...61E189 | 100,020 | FOR |
 0x1d29...Da5D1f | 50,017 | FOR |
 0x458c...21730E | 50,000 | FOR |
VOTE POWER
Proposal Status
- Published Onchain0x05C5...6500Bb
- Tue February 02 2021, 12:21 amVoting Period Starts
- Thu February 04 2021, 04:14 pmEnd Voting Period
- Thu February 04 2021, 05:41 pmQueue Proposal
- Sat February 06 2021, 05:50 pmExecute Proposal
Current Results
1-FOR
641,899.7
2-AGAINST
12,101.566