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?
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.
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
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.
7)
(iii) I think COMP should only go to lenders, not borrowers, as current constructed.
COMP airdrops are proportional to borrow rate. It makes sense to incentivize people to lend things with high demand, not borrow them.
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.
