There has been a longstanding quirk in the Compound Governor which requires all ETH spent in a proposal to come from the executor of the proposal. This disallows sending ETH stored in the Timelock. This proposal changes the implementation of GovernorBravo to allow for sending ETH from the Timelock. This proposal has been audited and signed off by [OpenZeppelin](https://gist.github.com/cylon56/752f9061713a8d737e526fdce4b85f1f). Arr00 is granted $8k in COMP for his contribution.

[Discussion](https://www.comp.xyz/t/enable-transfer-eth-from-timelock/2689)  
[New Governor Bravo Implementation](https://etherscan.io/address/0xef3b6e9e13706a8f01fe98fdcf66335dc5cfdeed#code)  
[Fork Simulations](https://github.com/compound-finance/compound-protocol/tree/bba97f95c28b473945e90347f315703067145dd5/spec/sim/0115-timelock-send-eth)

Enable Sending ETH from Timelock (Revised)

There has been a longstanding quirk in the Compound Governor which requires all ETH spent in a proposal to come from the executor of the proposal. This disallows sending ETH stored in the Timelock. This proposal changes the implementation of GovernorBravo to allow for sending ETH from the Timelock. This proposal has been audited and signed off by [OpenZeppelin](https://gist.github.com/cylon56/752f9061713a8d737e526fdce4b85f1f). Arr00 is granted $8k in COMP for his contribution.

[Discussion](https://www.comp.xyz/t/enable-transfer-eth-from-timelock/2689)
[New Governor Bravo Implementation](https://etherscan.io/address/0x44b68e6f47b4eb2f3b6d8158b60a5fa681a5b911#code)
[Fork Simulations](https://github.com/arr00/compound-protocol/tree/8930b0ff7460337f0303b16942f79f5aa63dfde8/spec/sim/0114-timelock-send-eth)

Enable Sending ETH from Timelock

https://www.comp.xyz/t/goodbye-and-thank-you/3306

End Getty's Contributor Grant

## Background
Following the two proposal which returned accidentally sent funds, this proposal will return 90% of the accidentally sent WBTC to a user that sent the WBTC to the Comptroller [here](https://etherscan.io/tx/0x5a4e6a6f29894914be5250d793fa2bb6d98a01d13528ea0d1f39afa731934629). 

## Mechanics
In order to returns the accidentally sent funds, this proposal sets a transient Comptroller implementation which implements a sweep function. This proposal sweeps the desired tokens to the Timelock and then returns the Comptroller implementation to the current implementation. The Timelock then disburses the funds. On top of the WBTC, orphaned UNI, BAT, and SAI will be swept from the Comptroller to the Timelock. Arr00 will be granted a bounty of 89k cUNI (~1790 UNI), which is part of the fee collected by the protocol from returning accidentally sent funds in proposal 37.

## Security
The execution of this proposal will not alter the Comptroller state at all—the method of a transient Comptroller implementation was chosen to reduce risk as much as possible. Additionally, there are [proposal simulations](https://github.com/arr00/compound-protocol/tree/2320ea601f150ba1f4d34a4111003f021bc2261b/spec/sim/0112-sweep-comptroller) which simulate proposal execution and normal market functionality afterword. Finally, the proposal was audited and signed off by Open Zeppelin as can be verified [here](https://gist.github.com/cylon56/752f9061713a8d737e526fdce4b85f1f?permalink_comment_id=4187802#gistcomment-4187802).

[Discussion](https://www.comp.xyz/t/implement-ctoken-sweeptoken-and-return-accidentally-sent-funds/1147/51?u=arr00)

Return Accidentally Sent Funds #3

## 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)

Vote By Signature

115

Total Proposals

Recent Proposals

Enable Sending ETH from Timelock (Revised)

Enable Sending ETH from Timelock

End Getty's Contributor Grant

Return Accidentally Sent Funds #3

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

Public API