Proposal summary

Compound Growth Program [AlphaGrowth] proposes deployment of Compound III to Ronin network. This proposal takes the governance steps recommended and necessary to initialize a Compound III WRON market on Ronin; upon execution, cWRONv3 will be ready for use. Simulations have confirmed the market’s readiness, as much as possible, using the [Comet scenario suite] (https://github.com/compound-finance/comet/tree/main/scenario). 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, deploy market GitHub action run and forum discussion.

Rewards

Gauntlet provided recommendations for COMP rewards, however, the COMP token is not whitelisted on CCIP. When the COMP token is whitelisted, we will create a proposal to bridge COMP tokens and set up speeds.

Proposal Actions

The first proposal action bridges ETH using roninl1NativeBridge. Bridged ETH will be converted to WETH automatically and swapped for WRON in order to seed the reserves.

The second proposal action approves and swaps received WETH for WRON via native Katana exchange router. We allocate 20% of the slippage due to WETH and RON volatility at the moment of proposal execution (in 8 days from the proposal published on-chain). Swap should not be snipped because MEV infrastructure has not been developed on Ronin yet. The dynamic mechanism to prevent such slippage will be cost inefficient due to development and audit resource allocation.

The third proposal action sets the Comet configuration and deploys a new Comet implementation on Ronin. This sends the encoded setConfiguration and deployAndUpgradeTo calls across the l1CCIPRouter to the bridge receiver on Ronin.

The fourth 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 Ronin cWRONv3 market.