Grant 19228.919 COMP to 0x57C970568668087c05352456a3F59B58B0330066

## 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 creates a proposal to perform the next service fee payment.

## Compensation Structure

We receive our quarterly payments in a lump-sum of COMP. Based on the last week's volume-weighted average price, this would be $52.01 per COMP for a total quarterly payment of 19,229 COMP equaling $1M per the original agreement. This COMP will be transferred from the Comptroller using `_grantComp`.

More detail in this [forum post](https://www.comp.xyz/t/openzeppelin-security-partnership-q1-2024-compensation-proposal/4853). 

By approving this proposal, you agree that any services provided by OpenZeppelin shall be governed by the [Terms of Service available here](https://docs.google.com/document/d/1eDcvirf0bdzpjIkfxQHm7fcV05O1IcLXL-Dl-U52Y4k/edit?usp=sharing) that were updated as of Sep 19th, 2023.

OpenZeppelin Security Partnership - 2024 Q1 Compensation

Bridge wrapped actions to Arbitrum with [BridgeReceiver](https://arbiscan.io/address/0x42480C37B249e33aABaf4c22B20235656bd38068)

## Simple Summary

A proposal from Gauntlet to adjust two risk parameters in the Arbitrum Native USDC comet.

Gauntlet recommends the following risk parameter changes:

* Increase ARB Supply Cap from 4M tokens ($4.10M) to 8M tokens ($8.20M)
* Increase WBTC Supply Cap from 600 tokens ($22.30M) to 1,200 tokens ($44.60M)

For more details, see the full forum post [here]( https://www.comp.xyz/t/gauntlet-arbitrum-native-usdc-risk-recommendations-11-22-23/4839 ).

## Motivation

These changes will decrease WBTC supply cap utilization from 92% to 46% and decrease ARB supply cap utilization from 100% to 50%, to allow further long-term protocol usage and growth.

[Full proposal and forum discussion](https://www.comp.xyz/t/gauntlet-arbitrum-native-usdc-risk-recommendations-11-22-23/4839)

## Specification

This proposal updates supply cap on V3 Arbitrum USDC Native market through `updateAssetSupplyCap` in the Configurator.

*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] 2023-11-27: Arbitrum Native USDC - Risk Recommendations

Set implementation for [GovernorBravo](https://etherscan.io/address/0xc0Da02939E1441F497fd74F78cE7Decb17B66529)

This proposal updates the implementation contract for Compound Governor Bravo. The update has been audited by OpenZeppelin and reviewed by various community members. There is full test coverage along with fork simulations demonstrating the successful usage of the new implementation. The changes are as follows:
- Upgrade from solc 0.5.17 to 0.8.10
- Enable propose by sig
- Enable vote with reason by sig

[Governance Repo](https://github.com/compound-finance/compound-governance/)
[OZ Audit](https://github.com/compound-finance/compound-governance/blob/main/audit/OZ-Sept-23.pdf)
[Forum post](https://www.comp.xyz/t/compound-governor-update/4714)

Compound Governor Bravo Update

Bridge wrapped actions to Base with [BridgeReceiver](https://basescan.org/address/0x18281dfC4d00905DA1aaA6731414EABa843c468A)

## Simple Summary

A proposal from Gauntlet to adjust five Interest Rate (IR) Curve parameters and one risk parameter in the Base WETH comet.

Gauntlet recommends the following IR Curve updates:

* Decrease **Annual Borrow Interest Rate Base** from 0.0099 to **0.005**
* Decrease **Annual Borrow Interest Rate Slope Low** from 0.037 to **0.035**
* Increase **Annual Borrow Interest Rate Slope High** from 0.5172 to **1.0**
* Decrease **Annual Supply Interest Rate Slope Low** from 0.0284 to **0.025**
* Increase **Annual Supply Interest Rate Slope High** from 0.6067 to **1.0**

Gauntlet recommends the following risk parameter update:

* Increase **baseBorrowMin** from 1e-18 to **1e-6**

For more details, see the full forum post [here]( https://www.comp.xyz/t/gauntlet-base-v3-weth-interest-rate-curve-recommendations-11-16-23/4795 ).

## Motivation

Gauntlet recommends updating the IR curve to incentivize higher utilization and increased TVL in the Base v3 WETH comet. Gauntlet recommends updating the  `baseBorrowMin` to bring it in line with the values set on Ethereum.

[Full proposal and forum discussion](https://www.comp.xyz/t/gauntlet-base-v3-weth-interest-rate-curve-recommendations-11-16-23/4795)

## Specification

The proposal updates the IR curve parameters and `baseBorrowMin` by using the respective methods on the `Configurator`.

*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] 2023-11-20: Base v3 WETH Interest Rate Curve Recommendations

Grant 100000.000 COMP to [Compoundv3Rewards](https://etherscan.io/address/0x1b0e765f6224c21223aea2af16c1c46e38885a40)

## Simple Summary
A proposal from Gauntlet to transfer 100,000 COMP (corresponding to roughly 150 days of distribution) from the Comptroller to the Rewards contract for Compound III on the mainnet.

## Motivation
COMP rewards ran out on the Compound III mainnet CometRewards contract, resulting in users being unable to claim their COMP rewards. Gauntlet proposes to top-up the rewards in order to allow users to continue claiming the rewards.

## Specification

The proposal grants the mainnet CometRewards contract at `0x1B0e765F6224C21223AeA2af16c1C46E38885a40` an amount of 100,000 COMP tokens by using the `_grantComp` method on the Comptroller.

*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.*

Top-up COMP Rewards on Compound V3 mainnet contract

Set [cAAVE](https://etherscan.io/address/0xe65cdb6479bac1e22340e4e755fae7e509ecd06c) collateral factor to 58.0%

Set [cCOMP](https://etherscan.io/address/0x70e36f6bf80a52b3b46b3af8e106cc0ed743e8e4) collateral factor to 45.0%

Set [cLINK](https://etherscan.io/address/0xface851a4921ce59e912d19329929ce6da6eb0c7) collateral factor to 64.0%

Set [cMKR](https://etherscan.io/address/0x95b4ef2869ebd94beb4eee400a99824bf5dc325b) collateral factor to 58.0%

Set [cSUSHI](https://etherscan.io/address/0x4b0181102a0112a2ef11abee5563bb4a3176c9d7) collateral factor to 52.0%

Set [cYFI](https://etherscan.io/address/0x80a2ae356fc9ef4305676f7a3e2ed04e12c33946) collateral factor to 60.0%

Set [cZRX](https://etherscan.io/address/0xb3319f5d18bc0d84dd1b4825dcde5d5f7266d407) collateral factor to 50.0%

## Simple Summary

A proposal from Gauntlet to adjust 7 Compound v2 risk parameters for Phase 4 of the Compound v2 Deprecation.

Gauntlet recommends the following changes:

* Decrease **AAVE Collateral Factor** from 63% to **58%**
* Decrease **COMP Collateral Factor** from 50% to **45%**
* Decrease **LINK Collateral Factor** from 69% to **64%**
* Decrease **MKR Collateral Factor** from 63% to **58%**
* Decrease **SUSHI Collateral Factor** from 57% to **52%**
* Decrease **YFI Collateral Factor** from 65% to **60%**
* Decrease **ZRX Collateral Factor** from 55% to **50%**

For more details, see the full forum post [here]( https://www.comp.xyz/t/gauntlet-compound-v2-deprecation-strategy-phase-4-11-9-23/4779 ).

## Motivation

In this [September 2022 snapshot vote](https://snapshot.org/#/comp-vote.eth/proposal/bafkreiar7qfbmmabclsogilncy542cyenehjulmdhhewuzojdooer4tnje), the community voted that each asset’s Collateral Factor may be reduced by an absolute percentage of up to 5%. After our analysis, Gauntlet recommends this max 5% decrease for each lowly supplied collateral asset in order to further deprecate the v2 market.

[Full proposal and forum discussion](https://www.comp.xyz/t/gauntlet-compound-v2-deprecation-strategy-phase-4-11-9-23/4779)

## Specification

The proposal updates the parameters using the `_setCollateralFactor` methods of the relevant cToken contracts.


*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] 2023-11-13: Compound v2 Deprecation (Phase 4)

Add new asset to market [Comet](https://etherscan.io/address/0xa17581a9e3356d9a858b789d68b4d866e593ae94) with asset configuration: {
      **asset**: 0xae78736Cd615f374D3085123A210448E74Fc6393,
      **priceFeed**: 0xA3A7fB5963D1d69B95EEC4957f77678EF073Ba08,
      **decimals**: 18,
      **borrowCollateralFactor**: 0.90,
      **liquidateCollateralFactor**: 0.93,
      **liquidationFactor**: 0.97,
      **supplyCap**: 30000.00
    }

Deploy and upgrade new implementation for [Comet](https://etherscan.io/address/0xa17581a9e3356d9a858b789d68b4d866e593ae94) via [Configurator](https://etherscan.io/address/0x316f9708bb98af7da9c68c1c3b5e79039cd336e3)

See proposal and parameter recommendations here: https://www.comp.xyz/t/add-reth-as-collateral-to-wethv3-on-mainnet/4498

Add rETH as Collateral to wETHv3 Mainnet

Transfer 7770.00 [COMP](https://etherscan.io/address/0xc00e94cb662c3520282e6f5717214004a7f26888) to 0x4f894Bfc9481110278C356adE1473eBe2127Fd3C

### Summary:

AlphaGrowth proposes a Compound Growth Program dedicated to advancing the Compound Protocol through targeted Business Development, Integration, and Marketing Campaigns. The program is structured with a total budget of 7770 COMP, distributed over a 4-month period and allocated into two distinct funds: BD Fund and Growth Fund.

The BD Fund is earmarked at 2760 COMP, with a monthly allocation of 690 COMP, dedicated to supporting Business Development operations for the Compound Growth Program.

The Growth Fund totaling 5010 COMP (2760 Marketing, 2250 Reserve fund), is reserved for incentivizing external parties to engage with and promote Compound in the form of Marketing campaigns and integration funding. It's important to note that AlphaGrowth operates independently of the Growth Fund and any unused portion of this fund will be returned to the Compound treasury upon the program's completion.

The forum post for the proposal can be found [here](https://www.comp.xyz/t/draft-for-compound-growth-program/4582/16)

### Background

Our initial intentions were to manage the next cycle of the Compound grants program. However as we chatted with more delegates, it became clear that Compound needed a small grants program and a concurrent growth program to onboard new users with successive developments. A missing part in Compound's operations is the focus on growth/BD-related activities. Compound already has other areas covered thanks to reliable partners in analytics, grants, and security.

* **Security:** Entrusted to OpenZeppelin.
* **Risk Analytics:** Managed by Gauntlet.
* **Grants:** Handled by the Compound Grants Program (CGP).
* **Growth:** Currently unaddressed.

In many cases, ecosystems and protocols have an internal BD team to manage the growth activities. However without a dedicated team and resources to focus on growth, Compound has not been able to keep up with its competitors (like Aave). The growth program will ensure that Compound will keep up with the industry while still maintaining the conservative nature of the protocol.

## **Proposal**

The Compound Growth program, a trial spanning over a period of 4 months will focus on key areas of growth for Compound Protocol. The Growth program has 2 main areas of focus, BD and Marketing. The AlphaGrowth team has spent the last 6 months discussing the growth requirements of Compound with various community members, delegates and other stakeholders. The program will be a trial run to identify the compatibility of a growth program for Compound. Additionally, this program will test several different strategies of sustainable growth for Compound.



### Scope

**Marketing**

* Publicizing Compound Protocol: Increasing Compound’s presence in the DeFi space
* V3 Awareness: Increase general community awareness about V3 and its benefits over V2
* Co-marketing: For new integrations of Compound with other platforms, marketing the integration to both the communities and DeFi ecosystem at large to engage new Compound users.
* Marketing : Paid marketing campaigns to engage new audiences

**Business Development**

* Increase V3 reach: Many Compound integrations are not on V3; our efforts will push more integrations from V2 to V3
* Compound Markets: We will integrate Compound markets with a variety of new services. Wallets, Exchanges, custodians, etc.
* dApp integration: Increasing DeFi applications that will promote activity, users and TVL.



### Operations

Over the period of 4 months, the Growth program will engage in the following activities:

### Business Development **Targets**

* V2 to V3 updating
  * Infrastructure & Services: Applications and no code tools that ease the developer onboarding and deployment of Compound to other apps. Many of these have a V2 api/service live. Our aim will be to integrate V3 with them. Some examples include
    * Ankr
    * Covalent
* Migrate Existing Pools & Increase Integrations:
  * We will help existing integrations migrate from V2 pools to V3 Pools to increase capital efficiency
    * Argent, which uses V2 pools
    * [Crypto.com](http://Crypto.com)
    * Pooltogether
* Integrating Compound onto Wallets & Exchanges
  * New wallet integration Opportunities: Find out wallets worth integrating, focus on wallets with regional presence
  * Integrate Centralized exchanges with Compound Markets
    * Nexo
    * OKX
    * Kucoin
* Offering Compound services to institutional custodians
  * We will connect with Custodians that provide services to high asset individuals/organizations (Typical sales cycles for custodians are 18 Months, far beyond the trial period of the program, but a successful deal will drastically increase TVL and access to institutional capital)
    * Hex Trust
    * Copper
    * Bitgo
* Structured Products/dApp Integrations
  * Facilitating new/existing web3 dApps that increase the use of Compound markets/pools. These are highly specific and targeted, typical key targets will be dApps serving to regional users
    * For example - Lemon App that caters to users in LATAM

**Marketing**

* Compound Content Creation & Education
  * Compound Labs (being a US-based organization) is restricted in its social media capabilities, so it cannot promote/market many activities on web3 Twitter (Apart from general information sharing through official handle). Compound as a Crypto Platform has limited presence on Social Media; No tweet storms, no widespread sharing and retweeting of information by members.
    * Our plan is to promote key updates about Compound using multiple channels on Twitter
    * Further, we’ll partner with DeFi KOLs to share information about Compound updates, spread the information about Compound in wider community
* V3 Awareness and Demand Generation
  * We’ll also facilitate steady marketing of V3. Many community members are still unaware of the V3 launch, let alone those outside of the community. We will spread the narrative of enhanced safety and other features of V3.
    * V3 Targeted ad campaigns to compound/aave/balancer follower base
    * Leveraging social media messaging to generate hype
    * Co-marketing for V3 integrations with wallets, exchanges, etc.
* Event Driven Marketing, Co-Marketing with with Partners and Integrations
  * The team will use events as a major driving factor for the Marketing campaign. Whenever a partnership or integration occurs we will lean in and shout it from the rooftops. Co-marketing grows the pie for both the partner and Compound. We will utilize both Compound’s audience and the partner’s audience to drive adoption and exposure. Some promotion-worthy events include:
    * Compound integration with a new dApp
    * New asset brought to the Compound
    * New chain integration announcement and launch
    * New pool availability
    * New markets on new platforms

  

  * Native USDC comet on Base chain - marketing extensively to Base and other L2 communities.
  * Compound launch on Linea
* Paid Campaigns
  * Running multiple campaigns through various channels to promote Compound products
    * KOL promotion: Highly targeted KOL Campaigns for DeFi users
    * AMAs: promoting conversations with high value partners
    * Content Sponsorships: i.e. DeFi edge with 24,000 newsletter readers

**Timeline**

The original growth program was to span for a period of 6 months. But as discussions on the proposal continued, a consensus was reached on starting first with a trail period. We plan the BD program to run for a time period of 4 months. The main goal of a trial is to test and experiment which activities attribute the most Compound Protocol.



### Milestones and Deliverables

The program will focus on the following parameters to measure its success

* Discovering the of Cost of Marketing Spend to increase $1 of TVL
* Discovering the User Acquisition Cost per Persona (Whale +$100k, Shark $10k-100k, Minnow under $10k)
* Discovering the User Acquisition Cost based on Integrations (Wallet, dApp, Structured Product)
* Discovering which Integrations, Wallets, Partners drive key metrics (Fees, Transactions, Users, Volume, TVL)

**Deliverables**

* 1 new V3 infrastructure service provider integration
* 1 upgrade of V3 infrastructure service provider integration
* A minimum of 2 sponsored content posts to large audiences such as other DeFi platforms & newsletters
* A minimum of 5 Co-Marketing campaigns with existing and new partners
* A minimum of 3 KOL Partnerships
* A minimum of 5 AMAs organized
* Begin conversations with key exchanges on integration
* Begin conversations with at least 40 dApps for integrations
* Total at least 1,000,000 impressions for marketing campaigns
* Minimum cumulative integrated dApp users to reach 1000
* At least 2 new dApp integrations

As we embark on a program to enhance Compound’s growth in the aforementioned metrics, we will be trying out a number of strategies for success. Which makes this an exciting yet challenging task. Not all growth strategies will work, the key aim of the growth program in its trial period will focus on identifying and gathering data on different activities and their rates of success.

a) Finding out which strategies moved the needle for Compound

b) what activities had the highest ROI,

c) identifying the plans that were able to create desirable behavior among target user base.

At the end of the program, we will present this data to the community to evaluate the data. The community should be able to identify, what works, and what doesn’t. What challenges did the growth program encounter during operations?



### Funding and Budget

The Compound Growth Program’s budget modeling is similar to Compound Grants Program. The funding ask of the growth program consists of two parts, Operational expenses and the Growth fund.

**Operational Expenses**

This covers the Growth and BD activities for the program, similar to the Program manager fees on Compound Grants program. This will also include the research activities for the program. Earlier research formed a separate component of the Growth program but after taking suggestions from community members, we included it within the BD part and reduced the scope of research.

The operational expenses for the program are **690** COMP/month

![](https://static.tally.xyz/a54a743f-ab3c-4a91-bd52-1ee1b504ce02_original.png)

**Growth Fund**

The growth fund will be the primary vehicle to boost Compound’s presence in the Crypto Communities online. This is similar to the fund of CGP which will be utilized to promote growth via partners.

![](https://static.tally.xyz/b97948bd-6851-4521-96f5-eb0451d350b0_original.png)



## Why AlphaGrowth

We believe decentralization allows for meritocracy. That holds true in the Compound ecosystem as well. We have firsthand experienced the problems that chains and protocols face in their expansion and integration. Our learnings will be pivotal to identifying the risks and benefits associated in various growth strategies for Compound.

Operating since 2018, AlphaGrowth has years of experience in DeFi and Crypto BD, We have successfully facilitated business development for multiple protocols including Kava, Collab.Land, Sommelier Finance, NEAR, CORE, Aurora, and many others.

In our latest engagement with the Kava grants program, the Kava ecosystem witnessed new integration of 78 projects and a TVL increase of $80+ Million. Our strategies have shown resilience and success throughout the crypto winter. Over the past year, our BD efforts have led to the deployment of over 150 projects on various blockchains. AlphaGrowth gets deals done, even in the bear.

We have interacted with over 100 ecosystems and 2700+ projects. To facilitate BD and grant deployment, our team built a crypto-native CRM and dashboard enabling us to efficiently evaluate and score opportunities, and report progress on all BD efforts.

Where are here for the long haul, and are honored to have the opportunity to be Compound’s boots on the ground.

### Impact and Transparency

At AlphaGrowth, we like doing business in public. We welcome any input or feedback from the Compound community on the proposal.

To keep the community informed on the progress, AG will implement the following tasks to guarantee transparency

* Regular reports through Community call on the progress of BD activities
* Progress reports highlighting various deals in the pipeline, successful integrations, closed deals and learnings (2 reports)
* A database that gives all the program specific information to the community so that the members can come, verify and inquire about the process.
* Post program analysis and report about spends on Development fund.



### Links:

[Website](https://alphagrowth.io/) | [Twitter](https://twitter.com/alphagrowth1) | [Linkedin](https://www.linkedin.com/company/alphagrowth/)

Compound Growth Program

Set [cAAVE](https://etherscan.io/address/0xe65cdb6479bac1e22340e4e755fae7e509ecd06c) collateral factor to 63.0%

Set [cCOMP](https://etherscan.io/address/0x70e36f6bf80a52b3b46b3af8e106cc0ed743e8e4) collateral factor to 50.0%

Set [cLINK](https://etherscan.io/address/0xface851a4921ce59e912d19329929ce6da6eb0c7) collateral factor to 69.0%

Set [cMKR](https://etherscan.io/address/0x95b4ef2869ebd94beb4eee400a99824bf5dc325b) collateral factor to 63.0%

Set [cSUSHI](https://etherscan.io/address/0x4b0181102a0112a2ef11abee5563bb4a3176c9d7) collateral factor to 57.0%

Set [cYFI](https://etherscan.io/address/0x80a2ae356fc9ef4305676f7a3e2ed04e12c33946) collateral factor to 65.0%

Set [cZRX](https://etherscan.io/address/0xb3319f5d18bc0d84dd1b4825dcde5d5f7266d407) collateral factor to 55.0%

## Simple Summary

A proposal from Gauntlet to adjust 7 Compound v2 risk parameters for Phase 3 of the Compound v2 Deprecation.

Gauntlet recommends the following changes:

* Decrease AAVE Collateral Factor from 68% to **63%**
* Decrease COMP Collateral Factor from 55% to **50%**
* Decrease LINK Collateral Factor from 74% to **69%**
* Decrease MKR Collateral Factor from 68% to **63%**
* Decrease SUSHI Collateral Factor from 62% to **57%**
* Decrease YFI Collateral Factor from 70% to **65%**
* Decrease ZRX Collateral Factor from 60% to **55%**

For more details, see the full forum post [here]( https://www.comp.xyz/t/gauntlet-compound-v2-deprecation-phase-3-10-27-23/4748 ).

## Motivation

In this [September 2022 snapshot vote](https://snapshot.org/#/comp-vote.eth/proposal/bafkreiar7qfbmmabclsogilncy542cyenehjulmdhhewuzojdooer4tnje), the community voted that each asset’s Collateral Factor may be reduced by an absolute percentage of up to 5%. After our analysis, Gauntlet recommends this max 5% decrease for each lowly supplied collateral asset in order to further deprecate the v2 market.

[Full proposal and forum discussion](https://www.comp.xyz/t/gauntlet-compound-v2-deprecation-phase-3-10-27-23/4748)

## Specification

The proposal updates the parameters using the `_setCollateralFactor` methods of the relevant cToken contracts.


*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] 2023-10-30: Compound v2 Deprecation (Phase 3)

Transfer 20847.00 [COMP](https://etherscan.io/address/0xc00e94cb662c3520282e6f5717214004a7f26888) to 0x8524B12CB7710C75B53bAa9ca72B420542d24C13

### **Summary**

After [successfully running CGP 2.0](https://compound.finance/governance/proposals/136) for two quarters and taking into consideration its impact, Questbook proposes to renew [Compound Grants Program 2.0](https://compound.finance/governance/proposals/136)  with a budget of $970,000 = 20,847 COMP (calculated based on the most recent COMP price at the time of proposal submission, which was $46.53), spread across three domains. Questbook has received great feedback from the community, builders and domain allocators to renew the grants Compound Grants and are grateful for their valuable inputs.

For more details, see the full forum discussion here: <https://www.comp.xyz/t/cgp-2-0-updates-and-renewal/4518/44>.

### **Background  and Progress**

CGP 2.0 went live on [Jan, 2023](https://twitter.com/compoundgrants/status/1614931948354535426?s=20) with a [grants budget of $800k](https://compound.finance/governance/proposals/136#:~:text=The%20grant%20budget%20is%20%24800K) spread across four domains. Over the past two quarters, CGP 2.0 domain allocators approved proposals requesting [$670,000 in grants](https://www.questbook.app/) and disbursed a total of ~$410,000 to accepted proposals from a pool of 100+ proposals. These domain allocators [**were elected from the community and by the community.**](https://compound.finance/governance/proposals/136) The specific information regarding the accepted proposals and the funded teams can be found [here](https://www.questbook.app/). Detailed information related to CGP 2.0’s funding breakdown, relevant metrics, insights, and proposed improvements going forward can be found [here](https://www.comp.xyz/t/cgp-2-0-updates-and-renewal/4518/44?u=harsha).

### **Proposal**

Based on the impact and insights derived from CGP 2.0, we propose renewing CGP 2.0 with a budget of $970k for two quarters. The domain allocators will utilize this budget to fund proposals that align with Compound's roadmap. After researching, gathering feedback from domain allocators, active community members, and builders, we propose supporting the following domains:

![Budget](https://i.imgur.com/YuDEz0G.png)

**RFPs, acceptance criteria and specifications for each domain**

1. Dapps and Protocol Ideas - [Link](https://docs.google.com/document/d/1Sre0LAkHEBQ1Rzhycbk3ALM3XBHF8NlXgl8tO5aVNWg/edit?usp=sharing)
2. Multi - Chain/Cross chain Strategy, Dev Tooling - [Link](https://docs.google.com/document/d/1QjT3UDNoTq4o0-xqYJVh-WB4X1EKS5eoVgOGZnw7k60/edit?usp=sharing)
3. Security Tooling - [Link](https://docs.google.com/document/d/1uEGIIK_eu_c008sJ_GY2nr9Bnjqq4p8dxnFKzvLLeYw/edit?usp=sharing)

* Given that [Dapps and New Protocol Ideas](https://www.questbook.app/dashboard/?grantId=0xeb047900b28a9f90f3c0e65768b23e7542a65163\&chainId=10\&role=community\&proposalId=0x36a) domain received more than twice the number of proposals compared to all the other domains combined, we propose merging Multi-chain and Cross-chain Strategy domain with the Dev Tooling domain.
* Additionally, we propose increasing the allocated grants budget for Dapps and New Protocol Ideas domain to $450,000 and reducing the grants budget of the [Security Tooling domain](https://www.questbook.app/dashboard/?grantId=0x291d6eb5de3b023ce9b760ef251b303c0c0fd11a\&chainId=10\&role=community\&proposalId=0x33b) to $150,000 taking into consideration the number of proposals and allocated grant amounts for both domains during [CGP 2.0](https://www.questbook.app/).

### Specifications and Implementation

Similar to the model implemented in CGP 2.0, the renewed grants program will be run using [**Delegated Domain Capital Allocation Model**](https://blog.questbook.xyz/posts/min-grants-dao-max-community-participation/). Each *domain allocator* will run their respective domain on-chain for full transparency using Questbook. Additional details related to specifications and implementation be found [here](https://www.comp.xyz/t/cgp-2-0-updates-and-renewal/4518/44?u=harsha).

### Compensation

Sourcing, reviewing, funding, marketing, tracking and nurturing proposals requires **significant expertise and time commitment** from the grants committee members and they should be fairly and competitively compensated for their efforts. Based on the learnings from CGP 2.0 specified above, we believe that a Program Manager is expected to dedicate approximately 25 hours per week, while the domain allocator is required to allocate an estimated 15 hours per week. However, these time commitments may vary depending on the number of proposals received for a domain and the domain allocators may exceed or work for less than 15 hours per week based on the proposal volumes. We propose keeping the hourly price the same for the Domain Allocators and the Program Manager as in the case of CGP 2.0.

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

* Questbook will provide the grants committee its grants orchestration tool free of cost.  We suggest that the grants committee continue with [Synapse](https://www.synaps.io/) for KYC services and [Docusign](https://www.docusign.com/en-in) for all contractual agreements, as we have been using these services throughout CGP 2.0.
* However, for any specific asks from the grants team in order to run the process more smoothly, Questbook will charge for any additional feature requests based on the development overhead through a retrospective grant from Compound.

**All unallocated funds from the first iteration of CGP 2.0** [**have been returned back**](https://etherscan.io/tx/0x295fcc65d4704a09ea0146e127e29c869b67198d9ff87f4fee1d9a17733a1f39) **to the Compound treasury**

The **KPIs, CGP 2.0 funding overview, expectations** of the proposed renewal program along with the **responsibilities of the Domain Allocators and the Program Manager** can be found [here](https://www.comp.xyz/t/cgp-2-0-updates-and-renewal/4518/44?u=harsha).

### **About Questbook**

* Questbook (YC-W21) is a decentralized grant orchestration tool, currently being used by Polygon, AAVE, Celo & Solana.
* Considering the achievements of CGP 2.0, as well as the time commitment and operational expertise necessary for running an effective grants program, Questbook will continue in the role of the Program Manager. [Ruchil](https://twitter.com/roohchill) from Questbook will assume the responsibilities of the Program Manager in place of Sriharsha Karamchati due to bandwidth constraints. [Ruchil](https://twitter.com/roohchill) was the program manager for Polygon facilitating the disbursal of ~ $1M in grants. He works with Solana foundation and ecosystems within Solana on a daily basis to help them design their grants program. He has received a grant of $250K from the Solana foundation for the same. He also worked closely with CGP 2.0 Program Manager and Grants team.

### **Disclaimer**

Questbook has been collaborating with Michigan Blockchain to work through the details of this grant renewal proposal and communicate the merits to the broader Compound community. Michigan Blockchain was not provided consideration as a result of this collaboration as both proposers believe the passing of this proposal is in the best interest of the Compound protocol.

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