Proposal summary

Compound Growth Program [AlphaGrowth] proposes the deployment of Compound III to the Optimism network. This proposal takes the governance steps recommended and necessary to initialize a Compound III WETH market on Optimism; upon execution, cWETHv3 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 on 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 action bridges 10 ETH as seed reserves from Mainnet Timelock to Optimism L2 Timelock using OpL1StandardBridge.

The second action sets the Comet configuration and deploys a new Comet implementation on Optimism. This sends the encoded setFactory, 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 4 COMP/day and borrow speed to be 3 COMP/day. The last two steps are to wrap ETH into WETH and transfer seed reserves into Comet

The third 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 cWETHv3 market.