## Simple Summary

A proposal to adjust two (2) parameters for two (2) Compound assets.

## Background
Gauntlet's simulation engine has ingested the latest market and liquidity data following the recent market crash. This proposal is a batch update of risk parameters to align with the [Moderate risk level](https://www.comp.xyz/t/community-risk-level-consensus-check/2437) chosen by the Compound community. These parameter updates are the thirteenth of Gauntlet's regular parameter recommendations as part of [Dynamic Risk Parameters](https://www.comp.xyz/t/dynamic-risk-parameters/2223/16).


[Full proposal and forum discussion](https://www.comp.xyz/t/risk-parameter-updates-2022-06-15/3323)


## Motivation and Specification

This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.

Our parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Our parameter recommendations seek to optimize for this objective function. For more details, please see [Gauntlet's Parameter Recommendation Methodology](https://medium.com/gauntlet-networks/gauntlets-parameter-recommendation-methodology-8591478a0c1c) and [Gauntlet's Model Methodology](https://medium.com/gauntlet-networks/gauntlets-model-methodology-ea150ff0bafd).




![](https://i.imgur.com/OgUgsJe.png)









## Dashboard


Gauntlet has launched the [Compound Risk Dashboard](https://gov.gauntlet.network/compound). The community should use the Dashboard to understand better the updated parameter suggestions and general market risk in Compound.


Value at Risk represents the 95th percentile **insolvency value** that occurs from simulations we run over a range of volatilities to approximate a tail event. 

Liquidations at Risk represents the 95th percentile **liquidation volume** that occurs from simulations we run over a range of volatilities to approximate a tail event.

These parameter changes increase borrow usage by 11 basis points with no change in Value at Risk or Liquidations at Risk.

![](https://i.imgur.com/M9SRF2g.png)

*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 Updates for 2 Collateral Assets

## 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

After discussion with the community, we will receive our next quarterly payment in a lump-sum rather than a continous stream to address recent market volatility. The dollar value of $1M in COMP remains the same as the original agreement. Based on the last week's average price, this would be $38 per COMP for a total quarterly payment of 26,316 COMP equaling $1M. This COMP would be transferred from the Timelock's existing balance.

More detail in this [forum post](https://www.comp.xyz/t/openzeppelin-security-partnership-2022-q3-adjustment/3325/7)

OpenZeppelin Security Partnership - 2022 Q3 Adjustment

## Simple Summary

A proposal to adjust ten (10) parameters for ten (10) Compound assets.

## Background
As planned in an [earlier forum post](https://www.comp.xyz/t/gauntlet-reserve-factor-methodology-for-the-compound-protocol/2876), Gauntlet has updated its dynamic parameter methodology to include recommendations for the reserve factor, as well as our usual parameters. To outline our thinking behind this addition, we split lending parameter optimization into a two step process:

* Balancing losses due to insolvency with capital efficiency
* Balancing the tradeoff between increasing supplier APY and growing reserves to cover insolvency losses

We are now adding a layer to our existing simulation logic that allows us to reflect the second step of lending protocol risk management: building sufficient but not excessive reserves to absorb losses that do occur. Our model assumes the protocol would like to build reserves greater than insolvency losses by a small margin, and includes this as an optimization objective. As reserves are built and losses occur in the simulation, a higher setting for the reserve factor allows us to absorb more losses while maintaining reserve coverage, while a lower setting for the reserve factor would require losses to be managed more tightly.



[Full proposal and forum discussion](https://www.comp.xyz/t/gauntlet-reserve-factor-optimization-framework/3283)


## Motivation and Specification

**Recommendations:**

We recommend decreasing reserve factors for USDC, USDT, and TUSD from 7.5% to 3.75%, and decreasing all other reserve factors by 500 bps (for example, decreasing ETH reserve factor from 20% to 15%). We previously proposed decreasing reserve factors for 17 total assets, but the maximum number of proposal changes is 10. As a result, we are recommending the 10 most impactful reserve factor decreases, based on expected annual reserves for each asset.

**Reasoning:**

The one-week rolling average VaR for Compound in a Black Thursday magnitude event is $0.30M.

The protocol has an existing reserve pool of $42.87M, broken down as follows:

![](https://i.imgur.com/rOA8xNd.jpg)


The protocol is expected to build reserves at a $3.86M annual rate should the reserve factors remain unchanged, broken down as follows:

![](https://i.imgur.com/LHb99ax.jpg)


Since the existing pool and growth rate are more than sufficient to cover a very severe loss event, our analysis shows that the optimal level of reserve factors is well lower than they are currently. By implementing the recommended cuts, the protocol could reduce its estimated annual reserve growth rate from $3.86M to $2.33M, reallocating $1.53M of funds to suppliers and thus incentivizing more users to lock collateral in Compound. 


*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.*

Reserve Factor Decreases for 10 Assets

## Simple Summary

A proposal to adjust five (5) parameters for five (5) Compound assets.

## Background
Gauntlet's simulation engine has ingested the latest market and liquidity data following the recent market crash. This proposal is a batch update of risk parameters to align with the [Moderate risk level](https://www.comp.xyz/t/community-risk-level-consensus-check/2437) chosen by the Compound community. These parameter updates are the twelfth of Gauntlet's regular parameter recommendations as part of [Dynamic Risk Parameters](https://www.comp.xyz/t/dynamic-risk-parameters/2223/16).


[Full proposal and forum discussion](https://www.comp.xyz/t/risk-parameter-updates-2022-06-01/3287)


## Motivation and Specification

This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.

Our parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Our parameter recommendations seek to optimize for this objective function. For more details, please see [Gauntlet's Parameter Recommendation Methodology](https://medium.com/gauntlet-networks/gauntlets-parameter-recommendation-methodology-8591478a0c1c) and [Gauntlet's Model Methodology](https://medium.com/gauntlet-networks/gauntlets-model-methodology-ea150ff0bafd).


![](https://i.imgur.com/4dsm6Fc.png)


## Dashboard


Gauntlet has launched the [Compound Risk Dashboard](https://gov.gauntlet.network/compound). The community should use the Dashboard to understand better the updated parameter suggestions and general market risk in Compound.


Value at Risk represents the 95th percentile **insolvency value** that occurs from simulations we run over a range of volatilities to approximate a tail event. 

Liquidations at Risk represents the 95th percentile **liquidation volume** that occurs from simulations we run over a range of volatilities to approximate a tail event.

These parameter changes increase borrow usage by 8 basis points with no change in Value at Risk or Liquidations at Risk.


![](https://i.imgur.com/sliC9l7.png)

*<sup>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.<sup>*

Risk Parameter Updates for 5 Collateral Assets

## Simple Summary

A proposal to adjust five (5) parameters for five (5) Compound assets.

## Background

Gauntlet's simulation engine has ingested the latest market and liquidity data following the recent market crash. This proposal is a batch update of risk parameters to align with the [Moderate risk level](https://www.comp.xyz/t/community-risk-level-consensus-check/2437) chosen by the Compound community. These parameter updates are the eleventh of Gauntlet's regular parameter recommendations as part of [Dynamic Risk Parameters](https://www.comp.xyz/t/dynamic-risk-parameters/2223/16).

[Full proposal and forum discussion](https://www.comp.xyz/t/risk-parameter-updates-2022-05-18/3253)

## Motivation and Specification

This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.

Our parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Our parameter recommendations seek to optimize for this objective function. For more details, please see [Gauntlet's Parameter Recommendation Methodology](https://medium.com/gauntlet-networks/gauntlets-parameter-recommendation-methodology-8591478a0c1c) and [Gauntlet's Model Methodology](https://medium.com/gauntlet-networks/gauntlets-model-methodology-ea150ff0bafd).

![](https://i.imgur.com/995NEMj.png)

## Dashboard

Gauntlet has launched the [Compound Risk Dashboard](https://gov.gauntlet.network/compound). The community should use the Dashboard to understand better the updated parameter suggestions and general market risk in Compound.

Value at Risk represents the 95th percentile **insolvency value** that occurs from simulations we run over a range of volatilities to approximate a tail event. 

Liquidations at Risk represents the 95th percentile **liquidation volume** that occurs from simulations we run over a range of volatilities to approximate a tail event.

These parameter changes increase borrow usage by 28 basis points with no change in Value at Risk or Liquidations at Risk.

Our recent [market downturn report](https://www.comp.xyz/t/compound-market-downturn-risk-review-may-2022/3251) showed that many collaterals are resilient to insolvencies, as our simulation models have predicted. 

Since the recent market crash, user positions are generally more highly collateralized, partly due to previously lowly collateralized positions having been liquidated during the crash. Many top whale suppliers repaid some of their borrows during the crash, thus avoiding liquidations. As a result, Gauntlet's simulations reflect that Compound can prudently increase collateral factors post-crash.

Note that we are proposing increasing collateral factors for the stablecoins USDC and DAI. Recursive borrowing has decreased in the past month for both assets. The partially recursive positions have a substantial amount of other collateral assets locked, thus leading to a low chance of insolvency in those positions, as our simulation results reflect. 

![](https://i.imgur.com/WXeWl1n.png)

## Simple Summary

A proposal to adjust seven (7) parameters for seven (7) Compound assets.

## Background
This proposal is a batch update of risk parameters to align with the [Moderate risk level](https://www.comp.xyz/t/community-risk-level-consensus-check/2437) chosen by the Compound community. These parameter updates are the eleventh of Gauntlet's regular parameter recommendations as part of [Dynamic Risk Parameters](https://www.comp.xyz/t/dynamic-risk-parameters/2223/16).


[Full proposal and forum discussion](https://www.comp.xyz/t/risk-parameter-updates-2022-05-04/3215)


## Motivation and Specification

This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.

Our parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Our parameter recommendations seek to optimize for this objective function. For more details, please see [Gauntlet's Parameter Recommendation Methodology](https://medium.com/gauntlet-networks/gauntlets-parameter-recommendation-methodology-8591478a0c1c) and [Gauntlet's Model Methodology](https://medium.com/gauntlet-networks/gauntlets-model-methodology-ea150ff0bafd).



![](https://i.imgur.com/cDlaS0K.png)







## Dashboard


Gauntlet has launched the [Compound Risk Dashboard](https://gov.gauntlet.network/compound). The community should use the Dashboard to understand better the updated parameter suggestions and general market risk in Compound.


Value at Risk represents the 95th percentile **insolvency value** that occurs from simulations we run over a range of volatilities to approximate a tail event. 

Liquidations at Risk represents the 95th percentile **liquidation volume** that occurs from simulations we run over a range of volatilities to approximate a tail event.

These parameter changes increase borrow usage by 31 basis points and have relatively minimal increases in Value at Risk and Liquidations at Risk.

Note that we are proposing increasing collateral factors for the stablecoins USDC and DAI. Recursive borrowing has decreased in the past month for both assets. The partially recursive positions have a substantial amount of other collateral assets locked, thus leading to a low chance of insolvency in those positions, as our simulation results reflect.


![](https://i.imgur.com/XafmTvt.png)

Risk Parameter Updates for 7 Collateral Assets

Aztec (https://aztec.network/) is building the programmable privacy layer for web3. In March 2021, Aztec launched the world’s first private rollup on mainnet that enabled private payments using the state of the art zkSNARK proving system, PLONK. To date, users have deposited over 30,000 ETH via zk.money, an application built on top of the Aztec network.

The network’s latest development is Aztec Connect, which enables users to interact cheaply and privately with any Ethereum DeFi application via a bridge contract that indicates how the rollup should interact with the application’s smart contract. With Aztec Connect, users can deposit into and borrow from Compound with significant gas savings and privacy by default.

This quarter, the integration will go live on zk.money. Aztec is requesting a $100,000 grant to subsidize deposits into Compound - with $50,000 distributed upfront and $50,000 released three months after launch. This subsidy will kickstart the network effects for this integration and enable significant gas savings while network throughput ramps up. 

The proposal was discussed on the Compound Governance Forum and received support from the community. More detail about the grant request is available here: https://www.comp.xyz/t/enable-cheap-private-transactions-with-compound-using-aztec/2997

Note: The COMP requested in based on the COMP price at time of proposal submission.

Grant request for launching Compound with Aztec Connect

## Summary
This proposal is a patch developed by Equilibria which updates the cToken implementation contract for high TVL assets. The new implementation has been deployed to [0x3363BAe2Fc44dA742Df13CD3ee94b6bB868ea376](https://etherscan.io/address/0x3363bae2fc44da742df13cd3ee94b6bb868ea376).

This is the final proposal to bring all upgradeable cTokens up to the new implementation. In addition to updating the implementation, it grants $350,000[1] worth of COMP to Equilibria for the upgrade work and 79,764.36 USDC to Compound Labs for the ChainSecrity audit of the protocol[2].

[1] COMP value based on the current spot price at time of this proposal ($114)
[2] ChainSecurity Payment Transaction can be viewed [here](https://etherscan.io/tx/0x8aa026292f1bc869a1353b66d47673dbcf23cab2980e0d293fa3c7474caf17d0)

## Changelog
These changes implement the following:

* Upgrade the Solidity version of the cToken and related contracts to 0.8.10 - all contracts in the repo were changed to 0.8.10 but only the cTokens will be upgraded as part of upcoming governance proposals. This is due to the complexity of having multiple Solidity versions in the same repo.
* Remove the usage of SafeMath and CarefulMath in favor of Solidity 0.8’s checked math - Solidity will now automatically revert when math errors occur (overflows, division by zero, etc)
* Remove the custom errorCode return values in favor of reverts and custom errors - this allows for a more structured way to deal with errors rather than enum or string comparisons.

The previous upgrade can be seen here: [Proposal 101](https://compound.finance/governance/proposals/101)

## Development
The code changes can be viewed here: [Pull Request #152](https://github.com/compound-finance/compound-protocol/pull/152).

Audits of these changes were completed by ChainSecurity and OpenZeppelin and all issues were either fixed or out of scope for this change. For further discussion, please view the [Community Forum thread](https://www.comp.xyz/t/rfp12-implementation-ctoken-cleanup/2694).

Update High-TVL cToken Implementations

## Simple Summary

A proposal to adjust two (2) parameters for two (2) Compound assets.

## Background
This proposal is a batch update of risk parameters to align with the [Moderate risk level](https://www.comp.xyz/t/community-risk-level-consensus-check/2437) chosen by the Compound community. These parameter updates are the tenth of Gauntlet's regular parameter recommendations as part of [Dynamic Risk Parameters](https://www.comp.xyz/t/dynamic-risk-parameters/2223/16).


[Full proposal and forum discussion](https://www.comp.xyz/t/risk-parameter-updates-2022-04-20/3183)


## Motivation and Specification

This set of parameter updates seeks to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.

Our parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. Our parameter recommendations seek to optimize for this objective function. For more details, please see [Gauntlet's Parameter Recommendation Methodology](https://medium.com/gauntlet-networks/gauntlets-parameter-recommendation-methodology-8591478a0c1c) and [Gauntlet's Model Methodology](https://medium.com/gauntlet-networks/gauntlets-model-methodology-ea150ff0bafd).


![](https://i.imgur.com/pOIFSQd.png)

Risk Parameter Updates for MKR and AAVE

## Background

**There were [timing issues](https://www.comp.xyz/t/proposal-openzeppelin-security-partnership-2022-q2-adjustment/3100/3?u=cylon) with the Sablier stream creation in past canceled proposals. In this proposal, we've removed Sablier and will continue with the existing streaming function. More information on the timing issue is available [here](https://www.comp.xyz/t/proposal-openzeppelin-security-partnership-2022-q2-adjustment/3100/5?u=cylon).**

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. 

OpenZeppelin has finished auditing the Compound Deployed Contracts and finalized the CToken Refactor audit ([details here](https://blog.openzeppelin.com/compound-comprehensive-protocol-audit/)). On the Security Advisory services, OpenZeppelin has been focusing on improving[ the security of the Proposal Process](https://www.comp.xyz/t/proposal-security-process-discussion/2773) and Asset Listings. Finally, on Security Monitoring, OpenZeppelin is aiming to release an initial solution by the end of March.

As outlined in the original proposal, at the start of every quarter OpenZeppelin will create a proposal to update the service fee payment in accordance with the formula outlined in the [proposal](https://compound.finance/governance/proposals/76). As it is the beginning of a new quarter, OpenZeppelin is updating its existing streaming grant.

More detail in this [forum post](https://www.comp.xyz/t/proposal-openzeppelin-quarterly-adjustment/3100)

Vote By Signature

111

Total Proposals

Recent Proposals

Risk Parameter Updates for 2 Collateral Assets

OpenZeppelin Security Partnership - 2022 Q3 Adjustment

Reserve Factor Decreases for 10 Assets

Risk Parameter Updates for 5 Collateral Assets

Risk Parameter Updates for 5 Collateral Assets

Risk Parameter Updates for 7 Collateral Assets

Grant request for launching Compound with Aztec Connect

Update High-TVL cToken Implementations

Risk Parameter Updates for MKR and AAVE

OpenZeppelin Security Partnership - 2022 Q2 Adjustment V4

Public API