Compound

This proposal takes the governance steps recommended and necessary to initialize a Compound III USDC market on Polygon; upon execution, cUSDCv3 will be ready for use. Simulations have confirmed the market’s readiness, as much as possible, using the Comet scenario suite. Although real tests have also been run over the Goerli/Mumbai bridge, this will be the first proposal to actually bridge from Ethereum mainnet to another chain, and therefore includes risks not present in previous proposals.

Although the proposal sets the entire configuration in the Configurator, the initial deployment already has most of these same parameters already set. The new parameters include setting the pause guardian to a Gnosis multisig, which has been created on Polygon to match the same set of signers as currently on Ethereum mainnet. They also include risk parameters based off of the recommendations from Gauntlet. Finally, the parameters include a modest reallocation of some of the v2 USDT COMP rewards to borrowers in the new market.

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

Proposal Actions

The first proposal action sets the Comet configuration and deploys a new Comet implementation on Polygon. This sends the encoded setConfiguration and deployAndUpgradeTo calls across the bridge to the governance receiver on Polygon.

The second action approves Polygon’s ERC20Predicate to take Timelock’s USDC, in order to seed the market reserves through the bridge.

The third action deposits USDC from mainnet to the Polygon RootChainManager contract to bridge to Comet.

The fourth action approves Polygon’s ERC20Predicate to take Timelock’s COMP, in order to seed the rewards contract through the bridge.

The fifth action deposits COMP from mainnet to the Polygon RootChainManager contract to bridge to CometRewards.

The sixth action sets up the ENS subdomain v3-additional-grants.compound-community-licenses.eth, with the Timelock as the owner.

The seventh action writes the ENS TXT record v3-official-markets on v3-additional-grants.compound-community-licenses.eth, containing the official markets JSON.

The eighth action migrates the COMP distribution for v2 cUSDT suppliers, so as to keep the total COMP distribution constant.