Compound

Simple Summary

A proposal from Gauntlet to adjust 3 parameters (supply cap) for 3 Polygon Compound v3 USDC assets, and adjust one COMP rewards distribution.

Gauntlet recommend:

• Increase daily USDC supply COMP rewards from 0 to 34.73 ($1,268/day)
• Increase WBTC supply cap from 400 ($12M) to 1,000 ($30M)
• Increase WETH supply cap from 11k ($22M) to 20k ($40M)
• Increase MATIC supply cap from 10M ($10M) to 20M ($20M)

For more details, see the full forum post here.

Note that asset prices have since decreased, so the true USD values are slightly lower than previously stated.

Motivation

The high USDC utilization combined with the low TVL in the Polygon comet seems to be dissuading large borrowers from joining the protocol, despite the appealing positive Net Borrow APR. Allocating 34.73 daily supply COMP rewards would immediately incentivize USDC suppliers to join the protocol, thereby making more USDC available to be borrowed, and gaining greater momentum for growth in the comet.

Full proposal and forum discussion

Specification

This proposal implements the above changes using Compound V3 cross-chain governance.

By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos.