Compound

This proposal takes the governance steps recommended and necessary to initialize a Compound III USDbC (bridged version of USDC on Base) market on Base; upon execution, cUSDbCv3 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/Base Goerli bridge, this will be the first proposal to actually bridge from Ethereum mainnet to Base mainnet, 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 risk parameters based off of the recommendations from Gauntlet. Finally, the parameters include a modest reallocation of some of the v2 USDC supply-side COMP incentives to users 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 Base. This sends the encoded setConfiguration and deployAndUpgradeTo calls across the bridge to the governance receiver on Base. It also calls setRewardConfig on the Base rewards contract, to establish Base’s bridged version of COMP as the reward token for the deployment and set the initial supply speed to be 30 COMP/day and borrow speed to be 15 COMP/day.

The second action approves Base’s L1StandardBridge to take the Timelock’s USDC, in order to seed the market reserves through the bridge.

The third action deposits 10K USDC from mainnet to the Base L1StandardBridge contract to bridge to Comet.

The fourth action approves Base’s L1StandardBridge to take Timelock’s COMP, in order to seed the rewards contract through the bridge.

The fifth action deposits 12.5K COMP from mainnet to the Base L1StandardBridge contract to bridge to CometRewards.

The sixth action updates the ENS TXT record v3-official-markets on v3-additional-grants.compound-community-licenses.eth, updating the official markets JSON to include the new Base cUSDbCv3 market.

The seventh action reduces the COMP distribution to v2 cUSDC suppliers by 45 COMP/day, so as to keep the total COMP distribution constant.