This is a repost of [Compound Proposal 127](https://compound.finance/governance/proposals/127), given that the proposal did not reach quorum.

This proposal begins raising collateral supply caps, so that Compound III can continue expanding past its trial phase. The changes are specified on the [governance forum](https://www.comp.xyz/t/compound-iii-supply-caps/3628) and summarized below:

### Proposed Supply Caps

75,000 ETH, 6,000 WBTC, 600,000 COMP

### Proposal

The first three actions of [the proposal](https://github.com/compound-finance/comet/pull/576) raise supply caps for COMP, WBTC, and WETH accordingly, in the Configurator. The fourth action deploys a new implementation from the Configurator and upgrades the market to use the new implementation.


*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.*

Increase Compound III Supply Caps

This proposal begins raising collateral supply caps, so that Compound III can continue expanding past its trial phase. The changes are specified on the [governance forum](https://www.comp.xyz/t/compound-iii-supply-caps/3628) and summarized below:

**Proposed Supply Caps**

75,000 ETH ($97M)
6,000 WBTC ($112M)
600,000 COMP ($36M)

**Proposal**

The first three actions of [the proposal](https://github.com/compound-finance/comet/pull/576) raise supply caps for COMP, WBTC, and WETH accordingly, in the Configurator.  The fourth action deploys a new implementation from the Configurator and upgrades the market to use the new implementation.

## Background

Starting on Dec 21st, 2021, OpenZeppelin was [selected](https://compound.finance/governance/proposals/76) to offer the Compound DAO security services including continuous audit, security advisory, and monitoring. At the start of every quarter OpenZeppelin will create a proposal to update the service fee payment. 

## Compensation Structure

As discussed for the [Q3 proposal](https://compound.finance/governance/proposals/110), we will receive our quarterly payment in a lump-sum. Based on the last week's average price, this would be $57 per COMP for a total quarterly payment of 17,544 COMP equaling $1M per the original agreement. This COMP will be transferred from the Timelock's existing balance.

More detail in this [forum post](https://www.comp.xyz/t/openzeppelin-security-updates-for-august-september-2022/3626#q4-compensation-proposal-6)

OpenZeppelin Security Partnership - 2022 Q4 Adjustment

## Background
For the past three years, Gauntlet has worked with Compound to maximize the protocol’s capital efficiency given an acceptable level of market risk.

Full details of the proposal can be found [here](https://www.comp.xyz/t/gauntlet-compound-renewal/3541).



## Proposal

A proposal to renew Gauntlet’s 12-month engagement with Compound on continuous market risk management to maximize capital efficiency while minimizing the risk of insolvency and liquidations to create long-term sustainable growth.

Gauntlet’s Risk Management platform quantifies risk, optimizes risk parameters, runs economic stress tests, and calibrates parameters dynamically. Gauntlet uses agent-based simulation models tuned to actual market data to model tail market events and interactions between different users within DeFi protocols. The proposal includes continued support for Compound II, as well as support for Compound III. 

The service fee structure will be the same as the previous year’s engagement and calculated quarterly per the following formula: log(Number of Assets, 10) * Total Borrow * Marginal Base Fee tier bps / 4. 

To increase its alignment with Compound, Gauntlet will refund a portion of the payment should Gauntlet's risk parameter optimizations incur losses for the protocol during the engagement. For more details, see the full [proposal](https://www.comp.xyz/t/gauntlet-compound-renewal/3541).




*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.*

Gauntlet <> Compound Renewal

This proposal includes Compound III users in the [COMP Distribution](https://compound.finance/governance/comp), which is accomplished by re-allocating 161.42 COMP per day (14.17% of the total) from v2 markets. The total COMP Distribution is unchanged by this proposal.

- ETH borrowers: -35.31
- WBTC suppliers and borrowers: -70.63
- LINK suppliers and borrowers: -9.60
- UNI suppliers and borrowers: -9.60
- COMP suppliers: -16.42
- BAT suppliers and borrowers: -9.60
- ZRX suppliers and borrowers: -9.60
- Compound III USDC: +161.42

Lastly, 25,000 COMP are transferred from the Comptroller to the Compound III Rewards contract. Based on the parameters set earlier, this equals 154 days of distribution before governance would need to replenish or modify the distribution to Compound III users.

If successful, this proposal will take effect after Proposal 119 cures the Compound v2 price feed, and prior to the Merge.

[Full proposal and forum discussion](https://www.comp.xyz/t/initialize-compound-iii-usdc-on-ethereum/3499/5)

Initialize Compound III COMP Distribution

## Simple Summary

A proposal to adjust risk parameters for FEI as follows:


* Pause FEI borrowing.
* Set reserve factor to 99%.


## Background
Details are provided in the governance forum posts regarding [FEI](https://www.comp.xyz/t/deprecate-fei-market/3513).


## Motivation


In light of Tribe DAO’s proposal to enter a terminal state, the FEI market on Compound should be deprecated. Pausing FEI borrowing and setting a high reserve factor is the first step in winding down the FEI market.

## Specification

- Sets the cFEI reserve factor to 99% by calling `_setReserveFactor` on the cFEI contract
- Pauses borrowing on cFEI by calling `_setBorrowPaused` on the `Comptroller` contract, passing the cFEI address and true


*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.*

Risk Parameter Changes for FEI

## Summary

This proposal will make several changes to the cETH market on Compound v2 in preparation for the upcoming Ethereum merge and switch to POS consensus. This includes setting a borrow cap of 100,000 ETH, as well as updating the interest rate model to a jump rate model with much higher rates after exceeding 80% borrow utilization, up to a maximum of 1000% APR at 100% utilization.

## Reasoning

The upcoming merge has the potential to cause disruption to ETH lending markets due to the possibility of receiving airdrops of ETH fork tokens. This may incentivize excessive borrowing from ETH lending pools, which leads to negative user experience for depositors who cannot withdraw funds when utilization reaches 100%, as well as safety concerns due to potential to interfere with liquidations of ETH collateralized positions. The proposed changes should help reduce risk of the cETH market reaching 100% utilization. See the [forum discussion](https://www.comp.xyz/t/proposal-adjust-eth-interest-rate-model/3493) for further details.

The proposal includes payments to proposal contributors, including 100 COMP to MakerDAO governance timelock for Block Analitica (Maker risk) team’s analysis, as well as 45 COMP to Arr00 for development work.

cETH Risk Mitigation

This is a proactive proposal to unpause Compound V2 market liquidations IF the Pause Guardian decides to pause liquidations ahead of the execution of Proposal 119. This ensures that a pause action will only last ~23 hours as opposed to the usual 7 day governance process.

The motivation for pausing liquidations is to ensure that any users or downstream protocols have ample time to rebalance their positions once the price feed for cETH is restored. The Pause Guardian will decide to pause only if it is necessary based on the market conditions and state of existing positions. If the Pause Guardian decides that pausing is unnecessary, this proposal will be canceled.

Vote By Signature

128

Total Proposals

Recent Proposals

Increase Compound III Supply Caps

Increase Compound III Supply Caps

OpenZeppelin Security Partnership - 2022 Q4 Adjustment

Gauntlet <> Compound Renewal

Initialize Compound III COMP Distribution

Risk Parameter Changes for FEI

cETH Risk Mitigation

Unpause Seize

Unpause Seize

Oracle Update

Public API