Geoffrey Hayes

OpenZeppelin Security Partnership - Annual Renewal 2025


## Background

OpenZeppelin has secured Compound since December 2021, establishing a proven track record of comprehensive protocol protection. In our current annual term (July 2024-June 2025), we’ve completed 40+ security audits, reviewed 180+ governance proposals, and identified 6 critical vulnerabilities while maintaining zero protocol losses due to security exploits.

Throughout this partnership, we’ve maintained Compound’s ecosystem security while flexibly responding to incidents and adapting to the DAO’s evolving development needs. Our collaborative approach with key contributors has optimized processes and enabled early risk mitigation across protocol operations.


This renewal continues our [comprehensive security services](https://www.comp.xyz/t/openzeppelin-security-partnership-renewal-2025/6855#p-17213-services-2) with more detailed specifications of the coverage we’ve been providing to Compound, making our commitments more explicit.

## Compensation Structure

Previously OpenZeppelin used the Vendor Payment Aera Vault adopted in [Proposal 249](https://www.tally.xyz/gov/compound/proposal/249). With the deprecation of the Vendor Payment Aera Vault, Woof! Software proposed a [USDC-price-adjusted COMP streaming mechanism](https://www.comp.xyz/t/payment-streamer-audit/6779). This approach provides several benefits: 

* Reduced governance overhead for voters 
* Payment of USDC obligations using COMP 
* DAO clawback of unvested assets 
* DAO capture of net COMP appreciation

OpenZeppelin will continue its annual renewal model for our Security Partnership adopting the same streaming approach. Our governance proposal will initiate a deposit of 110% of the 4M USDC equivalent in COMP, using a [30-day TWAP price at week of proposal submission](https://dune.com/idle.finance/twap-calculator?1.+End+Date_db9004=2025-06-20+00%3A00%3A00&2.+Rolling+Average+Timeframe_n71719=30&3.+Token_t1ab42=COMP), to be streamed over the course of a year starting at the beginning of Q3 2025.

The 10% buffer is designed to accommodate potential price fluctuations while balancing capital efficiency. **OpenZeppelin will only receive the prorated portion of the $4M annual value based on actual service duration**.

Governance may initiate early termination through a subsequent on-chain governance proposal with at least three months advance notice. Unvested funds can be transferred to the DAO by anyone 10 days or more after the term ends or after the notice period expires.

This proposal grants COMP from the Comptroller to the [payment streamer contract](https://etherscan.io/address/0xf6e94c13f07a50b3aafe55e5785edc2be6c9620c#code), created by the [Streamer Factory](https://etherscan.io/tx/0x76338697eb4da86a002d438058668c1f411bb3c47275f90c8cc1ec137342f584) ([Audit Report](https://www.comp.xyz/t/compound-streamer-audit/6925)), and initializes the stream.

More detail in this [forum post](https://www.comp.xyz/t/openzeppelin-security-partnership-renewal-2025/6855).

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


[Gauntlet] Incentive Optimization Recommendations

# Simple Summary Gauntlet recommends the following adjustments to COMP incentives across comets. These adjustments are intended to encourage optimal utilization, lead to interest rate discovery, and optimize COMP spend across the protocol.

| Comet | Daily Borrow Incentive(in COMP) | Daily Supply Incentive(in COMP) | | --- | --- | --- | | Arbitrum USDC | 15→10 | 20→14 | | Arbitrum USDT | 15→11 | 15→11 | | Arbitrum WETH | 5→2 | 3→1 | | Base AERO | 8→4 | 3→1 | | Base USDC | 7→4 | 13→9 | | Base USDS | 12→9 | 24→15 | | Base WETH | 2→1 | 2→1 | | Ethereum USDC | 71→55 | 70→55 | | Ethereum USDS | 5→2 | 12.5→9 | | Ethereum USDT | 50→30 | 70→30 | | Etherem WETH | 20→10 | 10→5 | | Mantle USDe | 4→3 | 4→2 | | Optimism USDC | 4→2 | 2.5→1 | | Optimism USDT | 5→2 | 5→1 | Current spend is 522 COMP per day. We recommend reducing that by 177 COMP for a daily spend of 345 COMP. With the current COMP price at $29.45, this equates to $1.9M in emissions saved annually.

## **Motivation**

Full proposal and forum discussions can be found in the following post.

-[(Gauntlet) Incentive Optimization Recommendations](https://www.comp.xyz/t/gauntlet-incentive-optimization-recommendations/7468) 

# **Specification**

The proposal updates the parameters 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.xyz/tos

[Gauntlet] Incentive Optimization Recommendations (Mainnet, Arbitrum, and Base)

# Simple Summary

Gauntlet recommends the following adjustments to COMP incentives across comets. These adjustments are intended to encourage optimal utilization, lead to interest rate discovery, and optimize COMP spend across the protocol. 

| Comet | Daily Borrow Incentive(in COMP) | Daily Supply Incentive(in COMP) |
| --- | --- | --- |
| Arbitrum USDC | 15→10 | 20→14 |
| Arbitrum USDT | 15→11 | 15→11 |
| Arbitrum WETH  | 5→2 | 3→1 |
| Base AERO | 8→4 | 3→1 |
| Base USDC | 7→4 | 13→9 |
| Base USDS | 12→9 | 24→15 |
| Ethereum USDC | 71→55 | 70→55 |
| Ethereum USDT | 50→30 | 70→30 |

Current spend is 522 COMP per day. We recommend reducing that by 140 COMP for a daily spend of 382 COMP. With the current COMP price at $25.19, this equates to ~$1.29M in emissions saved annually. 

# Motivation

Full proposal and forum discussions can be found in the following post.

- [(Gauntlet) Incentive Optimization Recommendations (Mainnet, Arbitrum, and Base)](https://www.comp.xyz/t/gauntlet-incentive-optimization-recommendations/7468/2?u=gauntlet)

# Specification

The proposal updates the parameters 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.xyz/tos

# [Gauntlet] Rewards Contract Top-Up for Base and Unichain

# Simple Summary

Gauntlet recommends adding additional COMP to the Base and Unichain reward contracts.

* Base: 1012 COMP
* Unichain: 396 COMP

# Motivation

Full proposal and forum discussions can be found in the following post.

* [\[Gauntlet\] Rewards Contract Top-Up for Base and Unichain](https://www.comp.xyz/t/gauntlet-rewards-contract-top-up-for-base-and-unichain/7548 "[Gauntlet] Rewards Contract Top-Up for Base and Unichain")

# Specification

The proposal updates the parameters 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.xyz/tos