Compound

Proposal summary

Compound Growth Program [AlphaGrowth] proposes the deployment of Compound III to the Mainnet network. This proposal takes the governance steps recommended and necessary to initialize a Compound III USDS market on Mainnet; upon execution, cUSDSv3 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 off of the recommendations from Gauntlet.

Further detailed information can be found on the corresponding proposal pull request, deploy market GitHub action run and forum discussion.

wstETH price feed

For LSTs, the goal is to use full exchange rate price feeds. Thus, we treat that stETH:ETH is 1:1.

sUSDS and sUSDe collaterals

Gauntlet suggests having sUDSS and sUSDe collaterals. This proposal does not include them, because the price feed is under the audit. We suggest to start bootstrapping the liquidity without these collaterals and as the price feed is audited, we will add these collaterals. We discussed it with Gauntlet, and we received the approval to have such an approach.

Proposal Actions

The first proposal action sets the CometFactory for the new Comet instance in the existing Configurator.

The second action configures the Comet instance in the Configurator.

The third action deploys an instance of the newly configured factory and upgrades the Comet instance to use that implementation.

The fourth action configures the existing rewards contract for the newly deployed Comet instance.

The fifth action reduces Compound’s cDAI reserves and transfers it to Timelock, in order to convert it to USDS to then seed the market reserves for the cUSDSv3 Comet.

The sixth action approves DAI to DAI-to-USDS native converter.

The seventh action converts DAI to USDS with 1:1 ratio and transfers USDS to cUSDSv3 Comet.

The eight 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 Ethereum Mainnet cUSDSv3 market.