Proposal summary

FranklinDAO team with advice support from WOOF Software team proposes deployment of Compound III to the Arbitrum network. This proposal takes the governance steps recommended and necessary to initialize a Compound III USDT market on Arbitrum; upon execution, cUSDTv3 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 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 Arbitrum. This sends the encoded setFactory, setConfiguration, deployAndUpgradeTo calls across the bridge to the governance receiver on Arbitrum. It also calls setRewardConfig on the Arbitrum rewards contract, to establish Artitrum’s bridged version of COMP as the reward token for the deployment and set the initial supply speed to be 12 COMP/day and borrow speed to be 10 COMP/day.

The second action reduces Compound’s cUSDT reserves and transfers it to Timelock, in order to seed the market reserves for the cUSDTv3 Comet.

The third action approves 0 USDT from Timelock to ArbitrumL1CustomGateway to reset potential previous approves.

The fourth action approves 50K USDT to ArbitrumL1CustomGateway to take Timelock's USDT on Mainnet, in order to seed the market reserves through the ArbitrumL1GatewayRouter.

The fifth action bridges USDT from mainnet via ‘outboundTransfer’ function on ArbitrumL1GatewayRouter’s contract and sends it to Comet on Arbitrum.

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 Arbitrum cUSDTv3 market.