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fm Gup 5# PROPOSAL: Should Compound governance contribute funding to the Nomic Foundation?
## **Summary**
- Nomic Labs, the team behind Hardhat, has become the Nomic Foundation, a non-profit organization dedicated to Ethereum. Our mission is to empower developers to decentralize the world.
- The Nomic Foundationb s work will be focused on Ethereumb s developer platform with the objective of achieving a world-class developer experience, and generally improving Ethereumb s public goods support structures.
- [Hardhat](https://hardhat.org/) is the de facto standard developer tool used to build Ethereum software, with more than 23000 Github repositories using it and tens of thousands of active users. Prominent teams relying on it include ENS, Uniswap, Optimism, OpenZeppelin, Aave, Balancer, Chainlink, Synthetix, and many more leading teams.
- The new foundation will expand the Hardhat suite of tools and, most importantly, build long-term infrastructure to catalyze organic growth in the Ethereum tooling ecosystem, decreasing Ethereumb s dependence on any one organization to build and maintain core development platform components.
- Seeking $30m in total funding from the ecosystem. Donations of $15M already secured by the Ethereum Foundation, Vitalik Buterin, Coinbase, a16z, The Graph, Polygon, Chainlink, a16z, and Kaszek Ventures.
- **Web re proposing to Compound Governance to make a contribution of $5m to the Nomic Foundation to support its mission.**
## **Funding**
The Nomic Foundation aims to benefit the entire Ethereum ecosystem, which is why web re fundraising across multiple organizations and individuals within it.
The Ethereum Foundation is leading this round of contributions with $8M, alongside contributions from Vitalik Buterin, Coinbase, Consensys, The Graph, Polygon, Chainlink, Gnosis, a16z, a_capital, and Kaszek Ventures. These donors make up $15M, and web re aiming to raise $15M more.
## **Why Compound?**
Generally, we think that allocating capital to the Nomic Foundation makes strategic sense for any protocol treasury that is aligned long term with the growth of Ethereum, and web ve approached and will continue approaching several protocols.
The projects that the Nomic Foundation will deliver will create value for the entire ecosystem, including Compound. Web ll provide services to the Ethereum community that will:
1. Continue the maintenance of critical infrastructure used to build most protocols (Hardhat).
2. Increase developer productivity for every team in the ecosystem.
3. Accelerate developer onboarding to Ethereum, increasing the size of the experienced engineering hiring pool and making time-to-productivity shorter for new hires.
4. Accelerate the pace of innovation and the number of products being built.
5. Increase market volume driven by new users and new products.
We believe this grows the market for everyone, including Compound, and web d love to have the Compound DAO contribute $5m in funding to this community effort.
` @ ` =!
140oT>*my9IM; )_setContributorCompSpeed(address,uint256) @ WIpVh|5$V#uX03 f [V+FH4 # Security Solutions For Compound Governance
# Summary:
## Goal
Implement Security Solutions to prevent and mitigate loss of funds resulting from security risks introduced by community-proposed upgrades to the Compound protocol.
## Problem
As evidenced in recent market events and specifically Proposal 62, governance upgrades can introduce new security risk vectors which could result in reputational damage to the protocol and possible loss of user funds. Security is a continuous effort and should therefore be seen and addressed from a holistic, continuous perspective.
## Background
For the past two years, OpenZeppelin has worked formally and informally with Compound to perform [10+ security audits](https://blog.openzeppelin.com/?s=compound), develop a [standardized version of GovernorAlpha and GovernorBravo contracts](https://blog.openzeppelin.com/governor-smart-contract/), introduce security best practices for [safer governance systems](https://blog.openzeppelin.com/smart-contract-security-guidelines-4-strategies-for-safer-governance-systems/), and develop bespoke [threat detection agent scripts](https://github.com/forta-protocol/forta-agent-examples/tree/master/compound-ts) monitoring Compound.
As the community assumes greater responsibility for the protocol and the stakes become higher, Compound's decentralized phase of growth demands comprehensive and continuous security processes to thrive.
## Contributor grant
OpenZeppelin is requesting a streaming grant for the Security Solutions retainer fee to begin implementation of a comprehensive set of best-in-class Security Solutions throughout all stages of the Compound governance proposal lifecycle, the elements of which include:
* Protocol Security Officer to provide advisory services and recommendations on improvements to the governance process (specifically in the area of incident and emergency response)
* Security Training and tailored community support specifically designed to educate the community to security best practices and threats in the DeFi space related to the Compound protocol
* Continuous Audits of all new code introduced by governance proposals
* Continuous Threat Monitoring of the Compound Protocol
[See full proposal and forum discussion](https://www.comp.xyz/t/auditing-compound-protocol/2543)
Starting March 30, 2022, and after further feedback from the Community, OpenZeppelin, will create an additional proposal to cover the performance fee payment in accordance with the formula outlined in the full proposal.
## References
- Forum Discussion on reviewing large code changes: [https://www.comp.xyz/t/more-rigorous-process-on-reviewing-large-code-changes-re-comp-bug-9-29-21/2326/2](https://www.comp.xyz/t/more-rigorous-process-on-reviewing-large-code-changes-re-comp-bug-9-29-21/2326/2)
- Patch for Proposal 63: https://www.comp.xyz/t/compound-proposal-63-temporary-patch-for-comp-distribution-bug-9-29-21/2327
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5%m,C:Wu!\ #9kRf^: 1# Distribute DAI to Users Affected in the DAI Liquidations
**Background**
This proposal seeks to compensate users affected by the [unexpected increase](https://www.comp.xyz/t/dai-liquidation-event/642) in the DAI price to $1.30 on Coinbase Pro on November 26th, 2020. A total of 85,222,475 DAI was repaid on 11/26/20. Applying the 8% liquidation penalty, this proposal would pay out a total of 6,817,798 DAI from the 16.4 million DAI in the market [reserve](https://compound.finance/markets/DAI).
Thank you to the Compound community and investors for the weeks of feedback, iteration and discussions that have helped craft this proposal.
**Code Mechanics**
This proposal utilizes a slightly modified version of the [merkle distributor](https://github.com/arr00/compound-compensation-proposal) used for the airdrop of Uniswapb s UNI token. The merkle tree contains the [addresses of those affected](https://github.com/arr00/compound-compensation-proposal/blob/master/scripts/generateAddressBalances.js) by the liquidation event, and was reconciled and analyzed against on-chain data from around the time of the liquidation event (block bounds 11332733 to 11335286).
A relayer will claim the merkle drop for each wallet according to the distributor and distribute the DAI to userb s wallets. Users do not need to interact with any contract to claim this DAI.
[@arr00](https://www.comp.xyz/u/arr00)/[arr00](https://github.com/arr00/) is the core contributor to the code.
**Next steps:** If you support this proposal, you can delegate COMP to this autonomous proposal.
To view the full forum post, [see here](https://www.comp.xyz/t/proposal-distribute-dai-to-users-affected-by-dai-liquidations/2110).
` =!
140oT>*my9IM; _setPriceOracle(address) %K)FOA^~
2jbyM "# Oracle Improvement
## Introduction
This proposal will change the current oracle system from using Coinbase as the primary reporter of prices to Chainlink [Price Feeds](http://data.chain.link). Uniswap v2 is still used as an anchor (circuit breaker) and the anchor deviation window will change from 20% to 15%. As a precaution, the community multisig has the ability to engage a failover that will switch a marketb s primary oracle from the current Price Feeds to Uniswap v2.
### Proposal Call
Change the Comptroller oracle from [0x4007B71e01424b2314c020fB0344b03A7C499E1A](https://etherscan.io/address/0x4007B71e01424b2314c020fB0344b03A7C499E1A) to [0x841616a5CBA946CF415Efe8a326A621A794D0f97](https://etherscan.io/address/0x841616a5CBA946CF415Efe8a326A621A794D0f97)
### Oracle Update Details
Each asset supported on the Compound market has a corresponding USD-paired price feed reference contract and a validatorProxy contract (which allows for the UniswapAnchorView (UAV) oracle contract to be updated by the community as new markets are added). When the reference contract of a Price Feed is updated by a decentralized network of oracle nodes with a new aggregated price value, the transmitter of that data also calls the validate() function on the marketb s validatorProxy contract. When this function is called, the validatorProxy calls validate() on the UAV, which queries Uniswap v2 to check if the new price is within the Uniswap v2 TWAP anchor. If valid, the UAV is updated with the assetb s price. If invalid, the price data is not stored. Additional details on this process can be found in this comment [here](https://www.comp.xyz/t/oracle-infrastructure-chainlink-proposal/1272/55) on the Compound forum.
[Here](https://aws1.discourse-cdn.com/standard17/uploads/compoundcommunity/original/1X/7033ce2e313f56c40441ba6dd9d900b0c2b244a7.png) is a visual example of how BAT/USD price feed is used, though this flow is the same for all asset markets.
The frequency of updates for each price feed depends on two triggers:
* Deviation threshold - when the off-chain price of an asset is witnessed to have moved more than x% of the previously reported price, an on-chain update is initiated.
* Heartbeat threshold - If x minutes have passed without an update, a new on-chain update is initiated.
More information can be found on [data.chain.link](http://data.chain.link/). Example: [ETH / USD](https://data.chain.link/eth-usd).
Price update events can be witnessed on the[ Etherscan events tab](https://etherscan.io/address/0x841616a5CBA946CF415Efe8a326A621A794D0f97#events).
The UniswapAnchorView token configuration has two additional fields: reporter & reporterMultiplier.
* reporter: The address that submits prices for a particular cToken. This is always a ValidatorProxy contract that is always called by a price feed reference contract for each relevant price update posted by oracle nodes. In this case, 0xeBa6F33730B9751a8BA0b18d9C256093E82f6bC2 is the reporter of the price of BAT.
* reporterMultiplier: Used to transform the price reported by the price feeds to the correct base unit that the UniswapAnchoredView expects. This is required because the price feeds report prices with different decimal placement than the UniswapAnchoredView.
Audit report: Trail of Bits was commissioned for audit of the contracts.[ToB Audit report](https://drive.google.com/file/d/1TsOXhBLenStjdd2mxF1Sfmmh_Na9X527/view?usp=sharing)
Forum discussion and additional details: [Oracle Infrastructure: Chainlink Proposal](https://www.comp.xyz/t/oracle-infrastructure-chainlink-proposal/1272)
#### Why
In late January I wrote on the [forum](https://www.comp.xyz/t/building-a-medianizer/1031) b Compound NEEDS to improve the current oracle infrastructure as a matter of safety and growth. I think it is evident to users that the current solution is not ideal and not close to ideal. The event that occurred in November with Dai liquidations was preventableb &.In addition to preventing the November event from transpiring again, I think it is also in the protocolb s best interest to improve the oracle situation so Compound can safely support more assets.b
Five months, two forum threads, 114 forum replies, numerous calls, countless messages, and finally, we have a robust solution to improve the oracle system. This has been a long process, going over and re-reviewing many nuanced details with the community. Building in public is not always easy, but it was an insightful process and I am excited to see more assets on Compound. I look forward to continuing to improve the oracle system as the crypto landscape changes.
` =!
140oT>*my9IM; _setPriceOracle(address) %K)FOA^~
2jbyM "# Oracle Improvement
## Introduction
This proposal will change the current oracle system from using Coinbase as the primary reporter of prices to Chainlink [Price Feeds](http://data.chain.link). Uniswap v2 is still used as an anchor (circuit breaker) and the anchor deviation window will change from 20% to 15%. As a precaution, the community multisig has the ability to engage a failover that will switch a marketb s primary oracle from the current Price Feeds to Uniswap v2.
### Proposal Call
Change the Comptroller oracle from [0x4007B71e01424b2314c020fB0344b03A7C499E1A](https://etherscan.io/address/0x4007B71e01424b2314c020fB0344b03A7C499E1A) to [0x841616a5CBA946CF415Efe8a326A621A794D0f97](https://etherscan.io/address/0x841616a5CBA946CF415Efe8a326A621A794D0f97)
### Oracle Update Details:
Each asset supported on the Compound market has a corresponding USD-paired price feed reference contract and a validatorProxy contract (which allows for the UniswapAnchorView (UAV) oracle contract to be updated by the community as new markets are added). When the reference contract of a Price Feed is updated by a decentralized network of oracle nodes with a new aggregated price value, the transmitter of that data also calls the validate() function on the marketb s validatorProxy contract. When this function is called, the validatorProxy calls validate() on the UAV, which queries Uniswap v2 to check if the new price is within the Uniswap v2 TWAP anchor. If valid, the UAV is updated with the assetb s price. If invalid, the price data is not stored. Additional details on this process can be found in this comment [here](https://www.comp.xyz/t/oracle-infrastructure-chainlink-proposal/1272/55) on the Compound forum.
[Here](https://aws1.discourse-cdn.com/standard17/uploads/compoundcommunity/original/1X/7033ce2e313f56c40441ba6dd9d900b0c2b244a7.png) is a visual example of how BAT/USD price feed is used, though this flow is the same for all asset markets.
The frequency of updates for each price feed depends on two triggers::
* Deviation threshold - when the off-chain price of an asset is witnessed to have moved more than x% of the previously reported price, an on-chain update is initiated.
* Heartbeat threshold - If x minutes have passed without an update, a new on-chain update is initiated.
More information can be found on [data.chain.link](http://data.chain.link/). Example: [ETH / USD](https://data.chain.link/eth-usd).
Price update events can be witnessed on the[ Etherscan events tab](https://etherscan.io/address/0x841616a5CBA946CF415Efe8a326A621A794D0f97#events).
The UniswapAnchorView token configuration has two additional fields: reporter & reporterMultiplier.
* reporter: The address that submits prices for a particular cToken. This is always a ValidatorProxy contract that is always called by a price feed reference contract for each relevant price update posted by oracle nodes. In this case, 0xeBa6F33730B9751a8BA0b18d9C256093E82f6bC2 is the reporter of the price of BAT.
* reporterMultiplier: Used to transform the price reported by the price feeds to the correct base unit that the UniswapAnchoredView expects. This is required because the price feeds report prices with different decimal placement than the UniswapAnchoredView.
Audit report: Trail of Bits was commissioned for audit of the contracts. [ToB Audit report
](https://drive.google.com/file/d/1TsOXhBLenStjdd2mxF1Sfmmh_Na9X527/view?usp=sharing)
Forum discussion and additional details: [Oracle Infrastructure: Chainlink Proposal](https://www.comp.xyz/t/oracle-infrastructure-chainlink-proposal/1272)
#### Why:
In late January I wrote on the [forum](https://www.comp.xyz/t/building-a-medianizer/1031) b Compound NEEDS to improve the current oracle infrastructure as a matter of safety and growth. I think it is evident to users that the current solution is not ideal and not close to ideal. The event that occurred in November with Dai liquidations was preventableb &.In addition to preventing the November event from transpiring again, I think it is also in the protocolb s best interest to improve the oracle situation so Compound can safely support more assets.b
Five months, two forum threads, 114 forum replies, numerous calls, countless messages, and finally, we have a robust solution to improve the oracle system. This has been a long process, going over and re-reviewing many nuanced details with the community. Building in public is not always easy, but it was an insightful process and I am excited to see more assets on Compound. I look forward to continuing to improve the oracle system as the crypto landscape changes.
` =!
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]H%\^]_rfT 2"P{h x-,iY F# Add Market: LINK
This Compound Autonomous Proposal (CAP) proposes to add [Chainlink](https://chain.link/) Token [LINK](https://etherscan.io/token/0x514910771af9ca656af840dff83e8264ecf986ca) as a supported asset on Compound.
## Market Parameters
LINK is a widely distributed token, with significant liquidity both on and off-chain. As a new market, it will be introduced with the following conservative market parameters:
- Collateral Factor: 0%
- Reserve Factor: 25%
- COMP Speed: 0.0014625 (also set for UNI, BAT, ZRX)
- Interest Rate Model (JumpRateModelV2)
- 2% APY borrow base rate
- 20% APY borrow rate at kink
- Kink at 80% utilization
- 100% APY borrow rate at 100% utilization
A 0% collateral factor provides a b no riskb approach to adding the new asset, and allows the protocol to test if the interest rate model and other parameters are a proper fit. Once the market develops there can be an immediate follow-up proposal to increase the collateral factor based on market performance, stress tests etc.
The Reserve Factor, COMP Speed, and Interest Rate Models were chosen based off the parameters for similar assets (UNI, ZRX, and BAT)
## cLINK Contract
The cLINK contract is based on the most recently deployed cToken (cWBTC2) implementation, which includes a sweepToken enhancement for governance to collect accidentally sent tokens received by the proxy contract.
## Special Thanks
Special thanks goes out to MasterofNonce for writing this CAP description; Aar00 for helping write simulations; mistertom, jmo, blck, and rleshner for helping decide the parameter proposals; and the community in general for the support.
## References
- [cLINK contract](https://etherscan.io/address/0xface851a4921ce59e912d19329929ce6da6eb0c7#code)
- [Forums discussion](https://www.comp.xyz/t/add-market-link/1516)
- [Integration scenario](https://github.com/TRiLeZ/compound-protocol/blob/clink-integration/spec/sim/0010-clink-integration/hypothetical_clink_integration.scen)
- [Updated mainnet.json](https://github.com/TRiLeZ/compound-protocol/blob/clink-integration/networks/mainnet.json)
- [Updated token deploy script used](https://github.com/TRiLeZ/compound-protocol/blob/update-deploy-token/script/saddle/deployToken.js)
Contract