Conversation

SBF
@SBF_FTX
2) Right now most of the borrowing/lending in Compound is on BAT. There's nothing _wrong_ with the BAT activity per se, but it's not poviding much value compared to liquidity in USDT/wBTC/ETH/USDC/etc. How do we move more liquidity to more important markets?
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SBF
@SBF_FTX
3) The core problems are: a) not enough liquidity in USDT/WBTC/USDC b) $700k paid to farmers
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SBF
@SBF_FTX
4) A lot of the problem with (a) is that USDT and wBTC can't be used as collateral. I think the single most important thing is to fix that. (b) is a big cost to the protocol and isn't justified by the BAT farming.
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SBF
@SBF_FTX
5) So some proposals: (i) reduce COMP airdrops from 2880/day to 1k/day. COMP distributions should compensate the cost/capital/risk of providing liquidity; I think the true cost of that is closer to 1/3 of the current airdrop rate. COMP is up 300% or so; we need to adjust drops
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SBF
@SBF_FTX
6) (ii) Make the collateral factors for USDT and wBTC 75%. They're among the most liquid things on the platform, and right now people aren't lending because they can't borrow against them. This is an easy fix.
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SBF
@SBF_FTX
Replying to
@SBF_FTX
8) Hopefully with these updates the massive sucess of COMP can be redirected to the most important parts of the platform.
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SBF
@SBF_FTX
9) I can't propose these--I don't, alas, have 100k COMP--but would be excited to vote for them! The 3 suggestions are independent so can be 3 different votes.
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Mike McDonald
@MikeMcDonald89
Replying to
@SBF_FTX
and
@SBF_Alameda
I think it's cool to incentivize borrowing in the form of subsidizing costs rather than generating profit. Borrow $1mm in BAT and owe $700 in interest tmrw? Earn say $350 of COMP. Maybe even $699. But giving $1500 is outrageous
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