Proposal summary

Compound Growth Program [AlphaGrowth] proposes deployment of Compound III to Optimism network. This proposal takes the governance steps recommended and necessary to initialize a Compound III USDC market on Optimism; upon execution, cUSDCv3 will be ready for use. Simulations have confirmed the market’s readiness, as much as possible, using the Comet scenario suite. The new parameters include setting the risk parameters based off of the recommendations from Gauntlet.

Further detailed information can be found on the corresponding deployment pull request, proposal pull request, deploy market GitHub action run and forum discussion.

Proposal Actions

The first proposal action sets the Comet configuration and deploys a new Comet implementation on Optimism. This sends the encoded setConfiguration and deployAndUpgradeTo calls across the bridge to the governance receiver on Optimism. It also calls setRewardConfig on the Optimism rewards contract, to establish Optimism’s bridged version of COMP as the reward token for the deployment and set the initial supply speed to be 5 COMP/day and borrow speed to be 5 COMP/day.

The second action approves Circle’s Cross-Chain Transfer Protocol (CCTP) TokenMessenger to take the Timelock's USDC on Mainnet, in order to seed the market reserves through the CCTP.

The third action deposits and burns 10K USDC from mainnet via depositForBurn function on CCTP’s TokenMessenger contract to mint native USDC to Comet on Optimism.

The fourth action approves Optimism’s L1StandardBridge to take Timelock's COMP, in order to seed the rewards contract through the bridge.

The fifth action deposits 3.6K COMP from mainnet to the Optimism L1StandardBridge contract to bridge to CometRewards.

The sixth action updates the ENS TXT record v3-official-markets on v3-additional-grants.compound-community-licenses.eth, updating the official markets JSON to include the new Optimism cUSDCv3 market