Compound

Proposal summary

Compound Growth Program [AlphaGrowth] proposes the deployment of Compound III to the Optimism network. This proposal takes the governance steps recommended and necessary to initialize a Compound III USDT market on Optimism; upon execution, cUSDTv3 will be ready for use. Simulations have confirmed the market’s readiness, as much as possible, using the Comet scenario suite. The new parameters include setting the risk parameters 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 proposal action sets the Comet configuration and deploys a new Comet implementation on Optimism. This sends the encoded setFactory, setConfiguration and deployAndUpgradeTo calls across the bridge to the governance receiver on Optimism. It also calls setRewardConfig on the Optimism rewards contract, to establish Optimism’s bridged version of COMP as the reward token for the deployment and set the initial supply speed to be 5 COMP/day and borrow speed to be 5 COMP/day.

The second action reduces Compound cUSDT reserves to Timelock, in order to seed the market reserves through the Optimism L1StandardBridge.

The third action approves Optimism’s L1StandardBridge to take Timelock’s USDT, in order to seed the reserves through the bridge.

The fourth action deposits 10K USDT from mainnet to the Optimism L1StandardBridge contract to bridge to Comet.

The fifth 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 Optimism cUSDTv3 market